Mortgage Interest Deduction

[NeilLott]

Hi,

I co-own a home with my wife.  We are both listed parties on the 1098 mortgage interest forms sent to use by our lender for 2023.  Her name is at the top and mine underneath.

My question is if my wife is going to take the full amount on the 1098 as an itemized deductions on her tax returns because she paid the mortgage do I still need to report the 1098s on my tax return?

Thanks,

Neil

[xmasbaby0]

Why are you filing separate returns?   If you file that way, and your spouse itemizes deductions, it forces you to itemize too --even if you have no itemized deductions to put on a Schedule A.   

As for the 1098---if both names are on the deed and mortgage and you are married, either one of you can enter it or you can divvy it up between you if you choose to.  If you are not the one who is trying to get a deduction for the house, then do not put the 1098 on your return---there would be no reason to enter it unless you are trying to get the deductions for home ownership.

If you were legally married at the end of 2023 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $27,700 (+$1500 for each spouse 65 or older)  You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return.

 Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI)

 If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice since with online, you get one return per fee.

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separ...

[NeilLott]

Thanks for the tips.   We aren't legally married.  So it sounds like if I just leave the 1098 info off my return then that is what is required for her to take the itemized deduction.

[xmasbaby0]

@NeilLott Good grief.  Then when you asking income tax questions, do not refer to a "spouse" or a "wife" or a "husband" or use any of the terms that refer to someone to whom you are legally married.  That just starts us off with misinformation and leads us to give incorrect advice to you.

[NeilLott]

My apologies, didn't mean to mislead and I realize that little detail makes a big difference.

Thanks for your assistance.