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EstebanM3
New Member

"Did anyone else own this home with you?" MCC and filing Joint with spouse

Just wanted to give a heads up, this question needs revised in case filing joint with spouse. I recommend it asks if the co-owner is the spouse and verifies the filing status. Otherwise if you input 50%, it may cut your credit in half. Someone asked this question in March of 2020 and an expert answered "If you and your spouse jointly own the home, you can say yes. ", however I noticed it was reducing the credit we should be receiving. Until TurboTax fixes the question for MCC, "Did anyone else own this home with you?", if you are married filing jointly and both spouses are on the deed, you will have to answer "No" to avoid needlessly reducing the credit you should be receiving. Below is the snippet from the IRS stating interest should not be split if filing joint with spouse.


Publication 530

If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, the credit must be divided based on the interest held by each person.


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