My boyfriend and I purchased a home in July of 2019 Do we both have to claim the house in our taxes ? Or does it have to be only 1 of us and if so which one ?

[DJS]

There is no specific mortgage interest deduction unmarried couples can take. A general rule of thumb is the person paying the expense gets to take the deduction. In your situation, each of you can only claim the interest that you actually paid.

In order to claim the deduction you must have a legal ownership in the property and a responsibility to pay the mortgage. Generally, this means that you both are on the mortgage and responsible for paying the lending institution. However only one of you, typically the first person listed on the mortgage, will receive the 1098 mortgage interest statement.

To claim your mortgage interest deduction, even though you did not receive the 1098 you will need to complete Form 1040, Schedule A. Completing form 1040 requires that you itemize your taxes and not take the standard deduction.

After completing your 1040, Schedule A and recording the mortgage interest you are responsible for paying; you will also be required to attach a written statement detailing how much interest each party paid. The letter should include the name and address of the person who received the 1098.

[xmasbaby0]

Are you both on the deed and on the mortgage?  If so, then each of you can enter the amount you paid on your own tax returns.  Do not expect it to make much of a difference, though.  Since you only owned the home for part of a year, it is very unlikely that you will have enough to exceed your standard deduction.

Since the standard deduction went up for 2018 and beyond, and the limit for property tax and other state and local taxes paid was capped at $10,000 you are unlikely to exceed the amount of itemized deductions necessary to use them instead of taking your standard deductions.

2019 Standard Deduction Amounts

Single $12,200   (+ $1650 65 or older)

Married Filing Separate  $12,200   (+ $1300 if 65 or older)

Married Filing Jointly $24,400   (+ $1300 for each spouse 65 or older)

Head of Household $18,350  (+ $1650 for 65 or older)

(Also + $1650 if legally blind)

You will receive a 1098 from the mortgage lender in January showing the mortgage interest, property taxes and possibly loan origination fees paid in 2019.

Home Ownership

There is not a first time home buyers credit on a Federal return. That ended in 2010. If your state has such as credit, you will be able to enter it when you prepare your state return.

Buying a home is not a guarantee of a big refund.  Your deductions for homeownership combined with your other deductions (if any) must exceed your standard deduction to change your tax due or refund. If you purchased your home late in the year, you do not even have a full year of home ownership deductions.

Your closing costs on your new home are not deductible except for prepaid interest, prepaid property tax or loan origination fees.  There are no deductions for appraisal, inspections, title searches, settlement fees. etc.

Your down payment is not deductible.

Your homeowners insurance for fire, hazard, flood, etc. is not deductible for your own home.

Home improvements, repairs, maintenance, etc. for your own home are not deductible. 

Homeowners Association  (HOA) fees for your own home are not deductible.

Go to Federal> Deductions and Credits> Your Home to enter mortgage interest, property taxes, and loan origination fees (“points”) that you paid in 2019.  You should have a 1098 from your mortgage lender that shows this information.