You and your fiancee will get the biggest combined tax benefit if one of you itemizes and claims the full amount of the Form 1098 and the other takes the Standard Deduction. However, you may choose to split it any way you want.
If one of you claims the full amounts instead of splitting it, you will have a higher combined deduction amount between the two of you. This is because the person not claiming the Form 1098 can still take the full Single Standard Deduction which is $6,350.
