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**The information below has not been verified for the 2020 tax year as the IRS Pub. 550 has not yet been released by the IRS.**

Based on the information below, if more than one person owns the same investment, each would report their portion of the investment income on their return. We also recommend they attach an explanation to each return.

Per IRS Publication 550 Investment Income and Expenses (Including Capital Gains and Losses), on page 4:

Joint accounts. If two or more persons hold property (such as a savings account, bond, or stock) as joint tenants, tenants by the entirety, or tenants in common, each person's share of any interest or dividends from the property is determined by local law.

On one return (the person with the SSN reported on the form received), enter an explanation that the income from the Form 1099-B Proceeds From Broker and Barter Exchange Transactions is jointly owned and XX% is reported on return with SSN XXX-XX-XXXX.

On the other return (the person who didn't receive a form), enter an explanation that the income reported on the Form 1099-B was reported to SSN XXX-XX-XXXX and you own XX% of that income.

To enter Form 1099-B into the program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Investment Income in the Federal Quick Q&A Topics menu to expand, click Gain or loss on the sale of investments to expand, then click Capital gain or loss (Form 1099-B).
  3. Click + Add Form 1099-B to create a new copy of the form or click Edit to review a form already created.
  4. Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed with the program interview questions.
  5. Enter information from the 1099-B, with your percentage of proceeds and cost basis. The date sold and date acquired would be the same as what is on the 1099-B.

To add an explanation to your return:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Miscellaneous Topics in the Federal Quick Q&A Topics menu to expand, click Additional Information for E-Filing to expand, then click E-Filing Notes and Explanations.
  3. Continue with the interview process to enter all of the appropriate information..
  4. On the screen titled E-Filing - Notes for Electronic Return, enter your explanation, then click Continue.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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