new house and form 1098

[Padlw]

Hi,

My son and GF bought a house 12/2022. My son got form 1098, GF did not. On filing their taxes (Turbotax)  separately, each is better off taking the standard deduction . Since using the standard deduction is it necessary to state there is a form 1098 and fill that information in Turbotax ?

Thanks

[AamilD]

No, it is not necessary to enter your 1098 information if you are taking the standard deduction. However, there are some states which may allow for interest deductions so its a good idea to enter it to see if there are any state benefits.

Additionally, it would be a good idea to input it just for record keeping purposes so that next year you can have an idea on the potential deductions available.

[Padlw]

If the 1098 data was entered as you note, I assume the data somehow has to be divided and reported on both my son and GF tax filing ??

[LeonardS]

Yes, the amount reported by your son and GF will be based on their percentage of how much each paid. For example, if they split the payments equally then each would claim 50%.  If they take the standard deduction then they will not be able to claim the deduction. 

The standard deduction amounts are:

• $12,550 for single taxpayers
• $12,550 for married taxpayers who file their taxes separately
• $18,800 for heads of households
• $25,100 for married taxpayers who file jointly
• $25,100 for qualifying widows or widowers

[Padlw]

LeonardS THANKS for your answers, still have some

If my son/GF do not file form 1098 information for 2021 tax year, then say for 2022 they get married or the mortgage interest paid in 2021 puts them above the single deductible dollar amount  the 1098 form information they get for 2022 can be files - correct?

Thanks

[JulieS]

No, the 2021 1098-INT can only be used on a 2021 tax return. 

They may itemize in the future, but only using expenses paid during the tax year.