Revisit the mortgage interest interview. When you get to the screen that asks,
Do any of these uncommon situations apply to your loan? Select the first option Someone who isn't my spouse co-owns this loan. Then select whether or not your social security number appears on Form 1098. If your name isn't on the 1098 but you're liable for the loan, you can deduct the portion of the interest you paid.
As indicated by TurboTax, only enter the amounts that you are liable for. If everything is split evenly, only report half the mortgage interest, outstanding mortgage principal, mortgage insurance premiums, and property taxes.
If you are filing as single and own a home with someone else as joint tenants, then you should check the box indicating that your amount is different from what is on the 1098 and also revise the amount in Box 1 to accurately reflect your part of the interest.
For example, if your 1098 reported interest of $6,000 and you are splitting the interest evenly with the other joint tenant, you'd enter $3,000.
Lastly, on the next screen, briefly explain why the amount is different (you'd enter something like "filing single and own my home as a joint tenant").
If you are responsible for more than $750,000 of the outstanding mortgage principal, then your deduction will be reduced. If you are not, then you will get an itemized deduction for the full amount of mortgage interest paid if this is your only mortgage, assuming this is a first or second home for both you and the other party and that it is not used as a rental property.
See also this IRS FAQ page and this TurboTax tips article for more information.
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