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Level 3
posted May 31, 2019 5:08:15 PM

When claiming Real Estate taxes as Married Filing Separately, does it matter WHICH return to enter the data on - and of course not SPLIT the amount?

We are seeing the difference in filing SEPARATELY this year. One of us has only $7,500 income while the other has $150k  ...  Do we apply ALL of our real estate Taxes to the one with minimal income to get the most credit back?

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1 Best answer
New Member
May 31, 2019 5:08:17 PM

Yes, if the spouse claiming the total amount of the deduction on his/her separately filing tax return can substantiate that he/she did pay for these real estate taxes, that spouse can claim the fund amount of the deduction on his/her married filing separately tax return.

Here are the IRS recommendations regarding how to allocate deductions when each spouse is filing married filing separately

If you and your spouse file separate returns and one of you itemizes deductions, the other spouse will have a standard deduction of zero. In this situation, the other spouse should also itemize his or her deductions.

  • Deductible expenses paid out of separate funds are deductible only by the spouse who pays them.
    • For example, if otherwise deductible medical expenses are paid from an account owned by one of the spouses or in a community property state from an account that is the separate property of one of the spouses under the laws of that state, only that spouse may claim a deduction for the expenditure.
  • If expenses are paid from funds owned by both spouses such as from a joint checking account or an account that is considered community property under the laws of the state in which the spouses reside, you should generally split the deduction between you and your spouse.
    • For example, you each would deduct half of the mortgage interest on your separate returns for amounts paid from a joint checking account for interest on a residence owned by both spouses that is otherwise deductible mortgage interest.
    • If however, only one of the spouses is entitled to a deduction for the expense (for example, a payment of property taxes for property owned by just one of the spouses), only that spouse is allowed a deduction for the expenditure even if the expense is paid from joint funds. Each spouse must maintain records documenting who is considered to have paid the expense.

For more information for the IRS about filing status and the various requirements, please refer to this link:

https://www.irs.gov/publications/p504/ar02.html

1 Replies
New Member
May 31, 2019 5:08:17 PM

Yes, if the spouse claiming the total amount of the deduction on his/her separately filing tax return can substantiate that he/she did pay for these real estate taxes, that spouse can claim the fund amount of the deduction on his/her married filing separately tax return.

Here are the IRS recommendations regarding how to allocate deductions when each spouse is filing married filing separately

If you and your spouse file separate returns and one of you itemizes deductions, the other spouse will have a standard deduction of zero. In this situation, the other spouse should also itemize his or her deductions.

  • Deductible expenses paid out of separate funds are deductible only by the spouse who pays them.
    • For example, if otherwise deductible medical expenses are paid from an account owned by one of the spouses or in a community property state from an account that is the separate property of one of the spouses under the laws of that state, only that spouse may claim a deduction for the expenditure.
  • If expenses are paid from funds owned by both spouses such as from a joint checking account or an account that is considered community property under the laws of the state in which the spouses reside, you should generally split the deduction between you and your spouse.
    • For example, you each would deduct half of the mortgage interest on your separate returns for amounts paid from a joint checking account for interest on a residence owned by both spouses that is otherwise deductible mortgage interest.
    • If however, only one of the spouses is entitled to a deduction for the expense (for example, a payment of property taxes for property owned by just one of the spouses), only that spouse is allowed a deduction for the expenditure even if the expense is paid from joint funds. Each spouse must maintain records documenting who is considered to have paid the expense.

For more information for the IRS about filing status and the various requirements, please refer to this link:

https://www.irs.gov/publications/p504/ar02.html