This is our first year and we have paid a ton on interest of course. And also, of course, this makes for a great deduction.How do my girlfriend and I split the interest we have paid on our home when it comes to taxes?
Do you have a joint bank account or one person pays? If one person pays then the one whose name is on the check and the mortgage both would get the deduction. If joint (both names on both mortgage and checks) then I guess whoever decides to take the deduction. The interest is above the standard deduction of $5350 per person then?How do my girlfriend and I split the interest we have paid on our home when it comes to taxes?
are both of your names on the mortgage? if not, only the person who's name is on the mortgage can claim the interest deduction and you both have to file single
Share it on the percentage basis of what each of you paid.
If the 1098 from the mortgage company is in both names, then you can split it 50/50.
If the 1098 is only in one name, you can still split it 50/50, but the IRS may send a letter to the one whose name is on the 1098 claiming that they did not report the full amount. Then you would have to send a copy of the other tax return showing them that you claimed the full amount.
It seems like there may be a place where the one name claims the whole amount on the Schedule A, then deducts half as interest that goes to someone else - but you would have to look at the instructions, because I don't remember where that place would be...
If the 1098 is only in one name and that name has the highest AGI, I would keep it in that name as that would give you the greatest tax benefit if you look at the total financial picture.
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