Tax Rules for Jointly Owned CDs AARP Tax-Aide Program

Tax Rules for Jointly Owned CDs

Q: My dad passed away last year. He had several CDs that were jointly owned by my sister and me. Who is responsible for paying taxes on the interest on those CDs? Do we split these 50/50? A: Joint owners having equal rights split the interest income based on the number of joint owners. Any interest credited to the account prior to the date of death of one of the joint owners belongs to all the owners at that time. Interest credited to the account on and after the date of death belongs to the new owners. These questions are actual inquiries submitted by taxpayers to our AARP Tax-Aide Program. The AARP Tax-Aide Program is a volunteer-run, free tax-preparation and assistance program offered to low- and middle-income taxpayers with special attention to those age 60 and older. Our volunteers are trained and IRS-certified to understand individual federal-tax issues. Our volunteers provide tax assistance as a public service and cannot guarantee the accuracy of the information provided. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

Close In the next 24 hours, you will receive an email to confirm your subscription to receive emails related to AARP volunteering. Once you confirm that subscription, you will regularly receive communications related to AARP volunteering. In the meantime, please feel free to search for ways to make a difference in your community at Javascript must be enabled to use this site. Please enable Javascript in your browser and try again.