CM's post reminded me of another issue. The bank in which the checking account was opened will send a 1099 for any interest to the name first listed on the account.
We've opened an account with my name first so the interest will be reported to me, since I have a much lower tax liability threshold.
Here's an article on other potential liability issues; it's not straightforward. It's also raises some issues of which I was unaware.
Your MIL has added your name to her account so that you can operate it for her; but the money is still hers, not yours, and any interest accruing on the balance similarly would be credited to her and not you. Not your money = not your tax liability. No worries :)
To my knowledge, there aren't many checking accounts that pay a rate of interest sufficient to be taxable, unless the amount is in many thousands if not millions of dollars. Savings accounts can pay more.
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We've opened an account with my name first so the interest will be reported to me, since I have a much lower tax liability threshold.
Here's an article on other potential liability issues; it's not straightforward. It's also raises some issues of which I was unaware.
bankrate/finance/savings/risks-of-joint-bank-accounts-1.aspx
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