We bought the house in December 2014, so we've lived in the house for just over a year. We have no children, just a dog. We're both planning on filing single. Who claims the house? Can we split it?
With joint ownership for unmarried individuals, each can only claim the portion of any expenses such as interest or real estate taxes that they pay.
If a Form 1098 is issued and does not include your social security number as the first borrower you need to indicate that in TurboTax. It permits you to state another individual received the Form 1098.
In most cases, you do have to be listed on the mortgage as an owner to be able to deduct mortgage interest, but there is an exception.
Take a look at the following TurboTax help article for more details. The exception is covered in the last bullet point.
With joint ownership for unmarried individuals, each can only claim the portion of any expenses such as interest or real estate taxes that they pay.
If a Form 1098 is issued and does not include your social security number as the first borrower you need to indicate that in TurboTax. It permits you to state another individual received the Form 1098.
Hey bwa,
Thanks for your response. I think I got it, but would like a little more clarification.
It sounds like form 1098 will only be issued to one of us then. As we both pay for the house, does that mean we can both claim the expenses by this indication in TurboTax you mentioned, or can only the person who's name shows up as the first borrower on form 1098 claim the expenses? If we can both claim it, is it more beneficial for both of us to, or should only one person claim the expenses?
The only one who can claim it is the one that paid it. If that's both, you can claim your share. Whether it's more beneficial one way or the other depends on your incomes.
Who should claim the house, taxes, and expenses for the maximum refund. The person with the higher income?
I have the same question and situation , im reading this thread and no reply since may 2019?
Me and my significant other had the same situation, his sss no. was in 1098, but we share all the mortgage and
expenses in the house, my income is more than him. We also want to inquire if its possible to split the claim?
Yes, you can split the mortgage interest and real estate tax deductions based on what you each paid. The bigger tax benefit is with the person with the higher income. Also keep in mind these are itemized deductions and would only benefit if your total itemized deductions exceed the standard deduction. The standard deduction for single filers is $12,200 and head of household is $18,350.
Unmarried couples claiming mortgage interest.
You pretty much have a choice. One can claim it all or you can split it. It's usually best if only one claims it, allowing the other to use the standard deduction.
You have to meet the rules, which are:
I have the same questions but a bit more specific.
Me and my girlfriend bought a house together. We pay the mortgage 50/50.
Both of our names are on the 1098 but her social is the only one on the 1098.
We both agreed that I should claim 100% of the house. Every month I transfer her the money and she sends the payment.
Can I still claim 100% of the house?
Q. Can I still claim 100% of the house?
A. Technically, No, because you only pay 50% ("We pay the mortgage 50/50").
You can arrange your finances so that you pay 100%, e.g. you pay the deductible stuff, mortgage and real estate tax and she pays the other stuff, food, utilities, home insurance.
Got it
thank you for your response. Just a side note we have two kids and we agreed that she claims the children and I claim the house but I now I see that our only option is to split all of the deductions.
thank you for taking the time to respond. All responses were very helpful.
Hello,
I’ve read through these responses and haven’t gotten a fully clear answer. My fiancé and I are figuring out taxes. We each own the house and it’s split between us. We have a joint account where all of our money goes and the credit cards we pay things for are under my name so it’s like I pay the expenses while she pays the mortgage. All expenses and mortgage payments come out of the same account which is shared. She makes more than I do. Is it possible for her to claim the entirety of the mortgage interest and taxes, while I just do the standard deduction? Or do we each have to claim a portion of it?
IF we each have to claim a portion, can it be where she claims a larger portion of it due to our salary differences so we can see a larger deduction for her?
We are not married so it seems we might be able to have her have the deductible but I’m not sure.
Thank you.
1. A shared account means together you are paying all the bills. Only you two know who puts in how much and how you figured the amounts going in and for which bills. The IRS does not want you claiming something you are not entitled to claim. You are both entitled to claim mortgage interest if the house is in both names. You are not required to claim the mortgage interest and most people don't.
2. That said, the IRS believes you should claim the part for which you pay.
The IRS doesn't have much to say which makes it harder. The only thing the IRS says is what to do if you don't get the interest form, as seen on page 11 of About Publication 530, Tax Information for Homeowners is:
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 enter “See attached” to the right of that line.
3. Since she earns more, chances are she pays more or maybe all of the mortgage, depending on how you set up your finances.
However, most people take the standard deduction these days so the chances are high neither of you itemize but maybe one of you can. As a couple that has set up your finances, you can arrange them to pay bills as you please. The IRS has this chart of deductibility from Pub 936.
This would be a judgement call on your part for what you feel could be proven to the IRS, if they ask someday. Just for kicks, put it all in and see if it even matters. It may not matter and then you won't need to worry. If you both end up with the standard deduction, no need to decide anything.
I think you may have to be on the mortgage to take an interest deduction.
In most cases, you do have to be listed on the mortgage as an owner to be able to deduct mortgage interest, but there is an exception.
Take a look at the following TurboTax help article for more details. The exception is covered in the last bullet point.
Following along on this thread, Are you able to change your co-ownership% each year? if you claim 50/50 one year can you claim 80/20 the next year for ex.
If both names are on the deed, you can claim ownership % between yourselves however you agree.
However, you should probably be consistent when dividing up expenses, though; stick with 50/50 or 80/20 and not change from year to year.
Similarly, my partner and I are single and unmarried and both of our names are listed on the mortgage and the home. He makes slightly more than me and is paid on a K1 while I’m paid on a w2.
We haven’t started paying our 1st mortgage payment yet but it’s coming up. Our mortgage servicer only allows one monthly payment or a biweekly payment but all from one account as autopay and not from two separate bank accounts. The servicer allows manual monthly payments from two bank accounts.
Would you recommend we set up a joint account to split our monthly mortgage payments, or would you recommend that each of us alternate monthly payments from each of our own bank accounts? Or does where the money come from not matter?
Great question! Did you ever get an answer? I’m wondering same.
This question has been answered pretty thoroughly above but to reiterate-
You and your partner can divide the deduction on your individual taxes however you want to as long as both of you are on the mortgage. Since you're both filing single one of you can take it or you can split it 50/50 or 75/25 or whatever. Just be consistent from year to year and don't try to have both of you take the same deduction.