It depends.
Since both of your names are on the 1098, you will be able to include this information on either you or your fiancé's federal income tax return.
A person
can deduct mortgage interest as long as your name is on the title or deed
and you actually paid this interest during the year. So if you both pay half the mortgage each month, then you can include half of the mortgage interest on each tax return. If the funds are paid through a joint account then you can choose who takes the deductions (as long as the total adds up to the total being reported on your Form 1098) or allocate the amounts how you deem appropriate.
If you live in a community property state (Arizona,
California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or
Wisconsin), you will want to divide the 1098 deductions 50/50.)
