Hal_Al
Level 15

Deductions & credits

Q. Is there a way to pre-empt the notice by including such documentation to begin with?

A. No

 

Q. Is it better just to wait to hear from the IRS?

A. Yes

 

Q. What documents would be sufficient to show proof of payment? 

A.  You do not need any proof when you file your tax return.  That comes later if questioned by the IRS.  Yes,  12 bank statements showing, half of the mortgage amount deducted from the account, goin to the mortgage co., each month  should suffice.   In the case of a  joint, you would need to show you made sufficient deposits to cover the payments. 

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Unmarried couples claiming mortgage interest. You pretty much have a choice. One can claim it all or you can split it. It's usually best if only one claims it, allowing the other to use the standard deduction.

You have to meet the rules, which are:

  1. You are legally obligated to pay it (you are considered to have a constructive/equitable interest in the mortgage)
  2. You actually pay it. Paying from a joint account where you made sufficient deposits to cover the payments will usually meet this standard. However. paying from your own account would be a stronger audit defense.