Level 2

Question

Tax Year Prior to 2020: Married filing separately mortgage interest

Forum|Forum|7 years ago
June 6, 2019
8 replies
13 views

does turbo tax know to split it 50/50 or do i enter half of the amount on each return from box 1 on the 1098?

TurboTax Home & Biz Windows

Level 15

If you are married and file separately, enter on each return the share of mortgage interest for each spouse. The sum of the two must equal to the amount on form 1098. The split does not need to be 50/50.

But remember that both spouses must have the same deduction option. If one spouse uses itemized deductions, the other spouse must also use itemized deductions, even if they total less than the standard deduction. Or both spouses can use the standard deduction.

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A

adonahoeAuthor

Level 2

so we want to split 50/50, do i enter half of box 1 on 1098 or does turbo tax automatically assume 50%?

J

Jude38

Level 2

If it doesn't have to be 50/50 can it be 90/10? or is there a schedule for that?

X

xmasbaby0

Level 15

@Jude38

If you are filing married filing separately you can divide up the mortgage interest between the two of you in whatever way you both agree upon. It just cannot add up to more than 100% between the two spouses. Why are you filing separate returns--usually the worst way to file.

If you were legally married at the end of 2018 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $24,000 (+$1300 for each spouse 65 or older) You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit.

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states: AZ, CA, ID, LA, NV, NM, TX, WA, WI) If you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separately

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

J

Jude38

Level 2

Thank you Xmasbaby,

I very much appreciated your reply - I'm filing this way b/c I am not divorced yet and he no longer resides at the home- A lot of the credits listed I don't use - just medical and house & taxes - some home office -

But that's good about the mortgage Interest I thought it had to be in half

Thanks Again, jude38

M

Mae250

Level 2

Hello,

What if you are not married and filing seperately and both names are on the 1098 but only one of your social security numbers is listed on the form? We share bank accounts so everything comes out of there.

MaryK4

Level 15

If you need to split the mortgage interest paid amount, whoever does not have their social security number can indicate this in TurboTax (look for the I did not receive a 1098). You will each be able to report the amount you can deduct.

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N

ndj9

Level 2

Is the mortgage interest deduction affected by anything like AGI? My husband and I are doing our taxes side by side with identical 50/50 numbers and his summary page is showing half the amount of deduction than mine is. We've restarted 3 times with the same results. Only difference is his slightly higher income and/or AGI.

J

Jbs8917

Level 2

Wait. Why are the other tax experts saying you can allocate whatever percentage of mortgage interest you would like between each spouse, as long as the amount equals 100% of the interest paid that year?

My wife has a much larger tax obligation due to being under taxed on a one time company stock option distribution. We wanted to circumvent that liability with leveraging 100% of our property taxes and mortgage interest. Is that not an option?

X

xmasbaby0

Level 15

@Jbs8917 Remember that if one of you itemizes the other must also itemize when you file MFS. If one spouse uses all the deductions, it leaves the other spouse with nothing to deduct--no itemized deduction and no standard deduction either.

If you were legally married at the end of 2019 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $24,400 (+$1300 for each spouse 65 or older) You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit.

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states: AZ, CA, ID, LA, NV, NM, TX, WA, WI)

If you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separately

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

P

pilotgal8

Level 3

Married separate -If the husband paid ALL the mortgage payments how does he claim credit for that on Schedule A. I don't see where the splitting the credit for thepayments is provided.

S

SB212

Level 2

Do I also split the 'Outstanding Mortgage Principal' (box 2) if splitting the Mortgage Interest Received from Payer (box 1), or does that stay as the full amount listed on the 1098?

V

VictorW9

Level 7

If you are splitting the 1098, then it goes for whole 1098. Everything is split including the Principal mortgage in box 2.

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C

Concatenate

Level 2

@adonahoe 他妈的你黑鬼

T

tmkk

Level 2

Hi, my partner and I aren't married and we file our taxes separately. We are buying a house and will both be on the loan and title. We are in California. Can we choose that only one of us deducts the interest? Or can we choose a certain percentage each of us deducts? If so, does it mean that we both will need to itemize or can the other person do the standard deductions if they choose to?

Thank you

VictoriaD75

Level 12

If you are married filing separately and one spouse chooses to itemize, the other must itemize as well regardless of the dollar amount of deductions. One spouse cannot opt for the standard deduction while the other itemizes. You can split mortgage interest and property taxes in any manner you choose, such as 0%/100% or 50%/50%, as long as the total between the two returns does not exceed 100% of the total expense.

There are certain tax implications to this choice. The standard deduction is less for Married Filing Separately ($12,200 in 2019) versus Married Filing Jointly ($24,400 in 2019). Opting for the Married Filing Separately status excludes taxpayers from certain tax credits, such as the Earned Income Credit or education credits.

Finally, California is a community property state. You will have to list your spouse's income, tax liability, withholding, etc. on your return regardless of filing status.

Should You and Your Spouse File Taxes Jointly or Separately?

Married Filing Separately

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T

tmkk

Level 2

@VictoriaD75 hi, we aren't married. What are our options since we aren't married?

A

Anthonism

Level 2

For 2020, the value of the home must be less than $187,500. We are splitting the mortgage interest 50/50, but the value of the property exceeds $187,500. Do we also cut the property value in have in each return or do we put full property value in both returns and only divide interest?

MaryM428

Level 11

You do not divide the value of the property. Put the full property value in each return and divide only the mortgage interest. Your outstanding mortgage principle is entered as on the 1098 mortgage interest form.

In some cases, taxpayers may have a better return if one spouse takes all of the mortgage interest and the other takes the standard deduction.

B

Baysox

Level 2

How do I file my taxes separately from my spouse?

X

xmasbaby0

Level 15

@Baysox You want to know how to file separately from your spouse? When you are in My Info you are asked if you were married in 2021. Say yes. Next question is if you want to file together with your spouse---you say no. Then you will still have to enter some information--your spouse's name and Social Security number. You will also be asked if you and your spouse are using itemized deductions or standard deduction since you both are required to file the same way.

If I am filing a separate return why do I have to list my spouse’s information on my return?

Even if you file separate returns (the worst way to file) you each have to list each other's SSN's and some other information on your own tax return. The IRS can then cross check to make sure you are not "double dipping" for itemized deductions, dependents, etc.

If you are in a community property state, there is more information that will be needed.

Community property states: AZ, CA, ID, LA, NV, NM, TX, WA, WI

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

If you were legally married at the end of 2021 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $25,100 (+$1350 for each spouse 65 or older) You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit.

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states: AZ, CA, ID, LA, NV, NM, TX, WA, WI)

If you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separately

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**