My boyfriend and I co-own a new home. The 1098 received is in both of our names. We file separate taxes. How do we both claim information on our taxes? Do we take all the totals in all the boxes and divide them all in half? Or just divide the interest part in half? Also, how do you do this when efiling? Or do we need to mail them in?
Thank you for your help.
It depends, if:
You don't need to mail in the return. You still can e file.
Sorry I did not make it more clear, we both pay equally. What do you put in each boxes? We have 1-11 boxes with full amounts. Do we separately declare 1/2 of each of all the amounts in each box 1-11, or just 1/2 the interest on each of our separate claims? Also if we efile, how will the IRS know that each of us claim 1/2? Won't we get audited? Thank you.
As @MayaD indicated, each of you will enter the portion of the interest (Box 1) that each of you actually paid. If each of you paid one half of the mortgage and real estate expenses, then each should reflect that on each tax return. Outstanding mortgage principle (Box 2), split equally if both of you are responsible for half. Box 3 is the mortgage origination date. If there is anything in Refund of overpaid interest (Box 4), allocate it the way you did the interest in Box 1 between the two of you. Mortgage Insurance Premiums (Box 5) and Points paid (Box 6), it’s the same concept, spilt equally if you both paid the same amount.
Don’t forget to allocate the property/real estate taxes that you may have paid. If you paid from an escrow account, it should be on your 1098 Mortgage Interest Form. If you didn’t pay from an escrow account, it will be on you tax statement.
Follow the instructions below which will include an explanation statement with your tax return so the IRS will know how you split the interest.
We cannot tell you if your tax return will be audited but you can review the TurboTax article Top 4 Red Flags That Trigger an IRS Audit for additional information. If you would like protection, TurboTax offers Audit Defense, which provides full representation in the event of an audit, for an additional fee. Make sure that you keep your records on your split of these deductions.
Also, there is a limit for home acquisition debt and if you are not married, the limit is applied per taxpayer. Please see IRS pub 936 Home Mortgage Interest Deduction for the debt amount limits.
For additional information, please see a similar question on the IRS website Frequently Asked Questions.