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My wife and I are filing married but filing separate. How do we go about to the question as indivuals "Did you make any payments on a home loan?" We own a home

 
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2 Replies

My wife and I are filing married but filing separate. How do we go about to the question as indivuals "Did you make any payments on a home loan?" We own a home

Are you itemizing?   When you file separate returns you either both have to itemize or both have to use standard deduction.   If you are both using standard deduction you have no reason to enter anything about home ownership since that is an itemized deduction.

 

If you are itemizing then the two of you have to agree on how you will enter the home ownership deductions.   You just cannot double dip.   No more than 100% of the mortgage interest, property tax etc. can be entered between your two returns.  

 

If you are in a community property state you have to conform to the rules for that too.

 

 

Why are you filing separate returns---usually the worst way to file?

 

If you were legally married at the end of 2021 your filing choices are married filing jointly or married filing separately.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $25,100 (+$1350 for each spouse 65 or older)  You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI)

 If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

 

https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separ...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Vanessa A
Expert Alumni

My wife and I are filing married but filing separate. How do we go about to the question as indivuals "Did you make any payments on a home loan?" We own a home

You can both answer yes to "Did you make any payments on a home loan" and you can split the interest or one of you can claim it.  This is simply a question to customize your TurboTax interview.  You are not locked into entering anything or claiming anything by answering yes. 

 

Your home loan is only relevant if you are itemizing your return.  If one of you are itemizing then you both must itemize or you both must take the standard deduction. This means one of you cannot itemize and claim the mortgage interest deduction while the other one takes the standard deduction. 

 

 

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