My wife and I file separate income tax returns. When deducting our mortgage interest and taxes is it ok for one of us to claim the interest, and the other claim the taxes? Both of our names are on the mortgage statements and accounts. Or do we need to keep them together?
2007-03-05 12:09:29 · 5 answers · asked by t m 1 in Business & Finance ➔ Taxes ➔ United States
If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line.
Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. You should let each of the other borrowers know what his or her share is.
Follow the reporting rules above if the 1098 is in only one name to give the other spouse the deduction
Publication 936
http://www.irs.gov/publications/p936/index.html
2007-03-05 12:15:20 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Technically, whoever "pays" for the interst should claim it and whoever "pays" the taxes claims them. My boyfriend and I have a mortgage together and we put both things on his name because it would have the greatest deduction. I recomend you try turbotax.com or taxcut.com, they are really easy programs that take you step by step through everything, it's so easy a caveman could do it. And you don't have to pay til you either print or file so if doesn't work out you just don't file with them.
2007-03-05 20:35:48 · answer #2 · answered by M J 2 · 0⤊ 0⤋
If the mortgage and taxes are in both your names, then you each came half of each. Well, I live in a community property state, so we do it that way here. Per the IRS:
Deductible expenses that are paid out of separate funds, such as medical expenses, are deductible by the spouse who pays them. If these expenses are paid from community funds, the deduction may depend on whether or not you live in a community property state. In a community property state, the deduction is, generally, divided equally between you and your spouse.
2007-03-05 20:32:29 · answer #3 · answered by LC 2 · 0⤊ 0⤋
As long as both of you are jointly responsible for the bills, then you can split them however you want to on your returns. I assume that you have some good reason to file separately - it will almost always cost you in taxes.
If you file separately and one of you itemizes, the other must also itemize.
2007-03-05 22:09:16 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
together.
2007-03-05 20:13:05 · answer #5 · answered by golferwhoworks 7 · 0⤊ 1⤋