Page 41 - Interest Income - Individuals Handbook

 One co-owner's funds used. If you used your
funds to buy the bond, you must pay the tax on
the interest.
 This is true even if you let the other co-owner
redeem the bond and keep all the proceeds.
 Under these circumstances, the co-owner who
redeemed the bond will receive a Form 1099-INT
at the time of redemption and must provide you
with another Form 1099-INT showing the amount
of interest from the bond taxable to you.
 The co-owner who redeemed the bond is a
“nominee.”
See Nominee distributions under How To Report
5 Interest Income in chapter 1 of Pub. 550 for more

information about how a person who is a
nominee reports interest income belonging to
another person.

One co-owner's funds used