What does tax responsible mean on a bank account? 4 Answers as of November 09, 2010

My 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.

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Masson & Fatini, LLP
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
Replied: 11/9/2010
LT Pepper Law
LT Pepper Law | Luke T. Pepper
If a bank account earns interest, the interest is taxable. So the tax responsible party is responsible to pay any taxes on the account.
Answer Applies to: Pennsylvania
Replied: 11/8/2010
David Hoines Law
David Hoines Law | David Hoines
Responsible for any interest earned on account.
Answer Applies to: Florida
Replied: 11/8/2010
Law Office of Harry Gordon Oliver II
Law Office of Harry Gordon Oliver II | Harry Gordon Oliver II
I never heard the term before. It may mean that someone is the responsible person for paying tax on the income earned by the bank deposits.
Answer Applies to: California
Replied: 11/8/2010
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