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.
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 :)
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.
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