My name is on my mortgage, but my fiance's name is also on the deed. We pay equally. Do I need to fill out a Form 1040, or can I just divide the interest on my 1098?

[gavlinjn]

I believe my fiance is supposed to file a Form 1040, but I just don't know if I'm supposed to do that as well. All of the articles I've seen about it are from the person on the deed's point of view, not the person on the mortgage's point of view.

[xmasbaby0]

If you are both filing tax returns you are both using Form 1040 since that is the form that one uses to submit a tax return to the IRS.

If you are both on the mortgage and deed and both paid ---then if you want to each enter the amount you paid in 2021 on your own tax returns you can do that.   It might not even have any effect.

Did you purchase the home in 2021?  Is this your first year of home ownership?

HOMEOWNERSHIP DEDUCTIONS

It is very hard for a lot of people to use itemized deductions now that the standard deduction is so much higher.  Your home ownership may not have any effect on your tax due or refund, especially if you purchased the house late in the year.  

Standard Deduction
Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach.  The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes. 

2021 STANDARD DEDUCTION AMOUNTS

SINGLE $12,550  (65 or older + $1700)

MARRIED FILING SEPARATELY $12,550  (65 or older + $1350)

MARRIED FILING JOINTLY $25,100  (65 or older + $1350 per spouse)

HEAD OF HOUSEHOLD  $18,800  (65 or older +$1700)

Legally Blind + $1350

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, private mortgage insurance (PMI) and loan origination fees (“points”) that you paid in 2021.  You should have a 1098 from your mortgage lender that shows this information.  Lenders send these in January/early February.

[Hal_Al]

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:

1. You are legally obligated to pay it  (you both meet this requirement just by being on the deed)

      2. You actually pay it. Paying from a joint account where you made sufficient deposits to cover the payments

will usually meet this standard. However, paying from your own account would be a stronger audit defense. 

[Mike9241]

for some taxpayers, it is advisable to enter this info because if you have a state income tax it might allow a deduction. every state is different.