If you are both listed on the Form 1098, then you are both responsible for the payment. Whoever actually paid the interest is the person who can deduct it.
@ColeenD3 what do we do if our mortgage is paid from a joint checking account?
You have a choice. You can each take half or you can make a decision as to who will itemize. Since you are not married, the other person can take the standard deduction.
@ColeenD3 in order for one of us to take the standard deduction, does the one person have to say they did NOT purchase a home? While the other that itemized says they DID purchase a home?
It is not a requirement to not say that the person who claims standard deduction did not buy a home, but it makes navigation in the program a lot easier.
the IRS does not care who decides to itemize as long as one person takes the deduction and one doesnt?
As stated by @ColleenD3 the person(s) who actually made the payments can deduct the portion they paid on a home they own jointly with another person.
There is clear language on who is allowed to deduct the mortgage interest when a home is jointly owned. Retain the records showing how it was paid and for showing the joint payments. A bank record would suffice for payments and deposits of the co-owner. I
No Colleen followed up and said "You have a choice. You can each take half or you can make a decision as to who will itemize. Since you are not married, the other person can take the standard deduction." - so does that means if you have a joint account you can choose who takes the deduction for the home and who takes the standard deduction?
Either of you can take the standard deduction or the itemized deduction, however, you cannot just decide who takes the deduction. In order to take the deduction you must have ownership interest in the house AND make the payment. You cannot take a deduction for something you did not pay. So, if one of you are paying the mortgage or if you are paying 30% and they are paying 70%, then you would take 30% of the interest deduction and they would take 70%.
If you have a joint account, it may be harder to differentiate who is paying which percent but the technical answer is still you can only deduct the portion you pay.
Also, be aware that the standard deduction is $12,550, so if your mortgage interest and other itemized deductions are not greater than the standard deduction, the mortgage interest may not benefit either of you.
@DianeW777 When I search the linked 936 document for what you quoted, I don’t see that information. Did the 936 document get updated since posting? If so, what is the new laws on this? I have gotten information from professionals in both directions but neither can point me to the exact law that needs to be followed.
Nvmd. I found it.
More than one borrower.
If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your paper return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 8b, and print “See attached” next to the line.
Similarly, if you're the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 8a. Let each of the other borrowers know what their share is.
@atysonwoods From IRS Publication, 936 (2023), Home Mortgage Interest Deduction - https://www.irs.gov/publications/p936
More than one borrower.
If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your paper return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 8b, and print “See attached” next to the line.
Similarly, if you're the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 8a. Let each of the other borrowers know what their share is.