Hi @snbm95340! Great question!
In early 2023, you will receive a form 1098 from the bank that owns the mortgage. That form will show the total mortgage interest paid in 2022.
Here's how to enter your mortgage interest statement in TurboTax:
- Select Deductions & Credits on Tax Home to open your return
- Select Your Home and select Mortgage Interest and Refinancing (Form 1098)
- You may need to select See all tax breaks to find this section
- Answer Yes to Did you pay any home loans in 2021? then Continue
- Type in the name of your mortgage lender
- Follow the instructions to enter the rest of the information on your 1098 form
Regarding splitting the mortgage interest, as long as all of your names are on the loan (do not necessarily need to be on the 1098 form) you can split the mortgage interest according to who pays what. It is important to make sure the total deducted between you does not total more than the amount on the 1098.
Here is an IRS FAQ Mortgage Interest
"If you’re each eligible to deduct the expense, you can both take a deduction for your portion of the expenses. Determine the proportionate share of the deductions based upon all facts and circumstances."
There are a few other things to consider:
- Do you and your husband and/or your mother itemize deductions? If none of you itemize deductions, this really becomes a moot point.
- With the increased standard deduction, the mortgage interest would have to be significant in order for you to get a tax benefit.
- In the first year of purchase you will not have a full year of property taxes and mortgage interest so many times the 2nd year of ownership gives you the greatest benefit.
- Don't forget that you can also deduct property taxes, points, and mortgage insurance, if applicable.
- Lastly, there is a limit on the deductible mortgage interest if the total outstanding principal is over $750,000. See: Mortgage Interest Deduction