I stumbled upon this thread and wondering if anyone can clear this up for me.
I work for a NY company, so it determines that the Property Tax Credit is better for me.
However, my wife works for a NJ company, so it determines that taking the Property Tax Deduction is better for her.
Is it allowed that I can take the credit while she takes the deduction if we are married filing separately? Or do we have to force TT to have us take the same thing (whether it's credit or deduction)?
Furthermore, the property was acquired before marriage with the title being held as Tenants in Common. Vesting prior to our refinance post-marriage read "Me as to a 1/3 interest and Wife as to a 2/3 interest." After our refinance, the only vesting title change was to add the word married after "2/3 interest." Is the credit/deduction still 1/3 for me and 2/3 for wife or is it 50-50 regardless of the vesting? We've paid from a joint account.
I understand that usually it is better for married couples to file jointly, but based on my numbers crunching last night, I think separately might better work in our favour since the majority of our medical expenses in 2021 were paid with wife's HSA funds plus her work premiums (which all count as medical expenses for a NJ return since NJ doesn't see the same tax advantages on HSAs that you see federally).
