@bagofchips wrote:
Thx ok so I see now how 60% can arise. So what if the spouse filing separately enters the same numbers? Does that lead to another 60%, yielding 120% of mortgage interest getting used?
Each spouse should only list the portion of interest they pay, and never more than the total (when combined). If you are living together in harmony and sharing funds, you can divide the interest any way you like. If you are separated, you would divide the interest based on your separation agreement or any court order.
(For example, suppose spouse A makes 75% of the marital income and spouse B makes 25% of the income, and the separation order requires spouse A to pay 75% of the mortgage. Spouse A would list 75% of the interest and spouse B would list 25%. Then, the limit calculation is applied, so spouse A would actually get to deduct 75% x 60% = 45% -- which is still 60% of the share they actually paid.)
