What does tax responsible mean on a bank account? 4 Answers as of November 09, 2010My fiance and I just opened our first joint bank account. I am the first person on the account, and it says on the agreement that I am tax responsible for the account. The bank lady said that because this is a checking account and does not generate income, this will not affect us at all, but I wanted to make sure there was not anything else I would be responsible for tax-wise.
Masson & Fatini, LLP | Richard E. Masson
Basically, any interest income earned on the account will be subject to taxation. Thus, since you are the primary on the account, you have agreed that you will report any interest income earned on the account on your tax return. Assuming that the account generates interest income, you will receive a 1099 from the bank making you aware of the interest income you actually earned.
Answer Applies to: California