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Generally you deduct the interest on the mortgage payments you paid if itemizing deductions is greater than the standard deduction.
The person--or people--who are on the mortgage or deed and who actually pay for the mortgage and/or property tax can enter it on a tax return. If you are simply living together and sharing expenses, but your name is not on any legal documents that obligate you to pay, you cannot enter anything on your tax return about the house.
CO-OWNING A HOME
More information on home ownership:
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.
2024 STANDARD DEDUCTION AMOUNTS
SINGLE $14,600 (65 or older/legally blind + $1950)
MARRIED FILING SEPARATELY $14,600 (65 or older/legally blind + $1550)
MARRIED FILING JOINTLY $29,200 (65 or older/legally blind + $1550)
HEAD OF HOUSEHOLD $21,900 (65 or older/legally blind + $1950)
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. (With possible exceptions for certain energy credits) (BUT——do make sure you keep careful written records/invoices, etc. of any improvements you make to the home for someday when you sell it.)
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 2024 You should have a 1098 from your mortgage lender that shows this information. Lenders send these in January/early February or you may be able to import the 1098 from the lender’s website.
Thank you for your response! We co-own the home, but the mortgage (and the 1098) are in my name only. So we'll claim our own portions of the paid interest.
A follow-up question: Should we do the same for mortgage insurance premium and real estate taxes?
I don't think both of you can claim the interest on the mortgage. If it is only in one name, that is who can claim it. If your financé is not list on the mortgage document, only you can claim the whole amount.
@thejendavis2014 To deduct home mortgage interest, you must have a legal and/or equitable ownership interest in the home. Legal ownership is documented in the deed to the home. You stated that you and your fiance are co-owners of the home but only you are liable on the mortgage. If so, your fiance should be named on the deed of trust establishing a legal ownership interest.
If your fiance is not a legal co-owner but living in the home with an equitable ownership interest, they can still deduct the interest they paid even if they are not named on the deed and are not liable on the mortgage. With equitable ownership, they enjoy the benefits and burdens of ownership. However, this can be a difficult way to go. Your fiance must be prepared to show they enjoyed the benefits of ownership as well as a fair share of the burdens of ownership.
Whether your fiance claims legal or equitable ownership interest, they will have to file a paper return and attach a statement explaining which party received the 1098 and how much interest each of you paid (See More Than One Borrower at the bottom of page 8 of Pub 936).
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