1098 split with ex husband over 2 year returns

[Anonymous]

Our primary home with ex husband was sold at owner financing.  Loan was paid off last week of December 2021.  In March 2022 I gave buyers a 1098 for the interest paid.  But I need to give half to ex husband.  His portion is going to show on 2022.  How to claim that so that I don’t get stuck with all the taxes on the interest?

[Critter-3]

WHY did you issue a 1098 form at all ????  YOU are not a bank  or in the business of holding mortgages so YOU did NOT have to issue a 1098 form.   If you were going to split it why did you not issue 2 forms ... 1/2 from each of you ??? 

Now your options are :

1) you each simply report the portion you are responsible for and explain what happened if the IRS ever questions it

2) the person whose SS# is on the 1098 as the issuer ( you could only have entered one)  completes their return without the interest and takes note of the bottom line and then adds the interest and again notes the bottom line.  This way you know the effect the interest had on the return and the other party owes you 1/2 of the difference in the taxes.  

[VolvoGirl]

Why is his half going to show on a 2022 tax return?   And you do know you enter the interest you received as a 1099 INT, right?  

[VolvoGirl · Accepted solution]

Oh I just remembered how to split it.  It is Nominee Interest.  Even though you didn't get  1099 INT for it you enter it as one.

Here's how to split the 1099Int for Nominee Interest.  Enter a 1099-Int under

Federal Taxes tab

Wages & Income

Interest and Dividends

Interest on 1099-INT - Click the Start or Update button

Whoever's ssn is on the 1099 enters the whole amount on their return.  Then after you enter it, on the next page it will ask

Tell us if any of these uncommon situations Apply and pick the first one, We need to adjust the taxable amount.

Then on the next page fill in the amount as a POSITIVE number and pick the first reason "I received all or part of this interest for someone else".

Then on the other person's return you enter it as a 1099Int and put the amount in box 1.

[Anonymous]

Thank you so much!!