My mother-in-law added me to her checking account. Any advice? - AgingCare.com

My mother-in-law added me to her checking account. Any advice?

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So I can pay her funeral expenses but since she's 94 and doesn't pay taxes will I have to claim it on my taxes.

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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.

bankrate/finance/savings/risks-of-joint-bank-accounts-1.aspx
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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 :)
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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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Be sure and keep very good records of any use of the account in case any questions arise.
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The short answer is no. Don't worry about it.
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