How to enter 1099-INT and 1098 when filing MFS

[kelny]

My husband and I file MFS because of my student loans. Our mortgage and savings accounts are in our names. Do I just enter the 1099-INT and 1098 on my return? We do the standard deduction.

[xmasbaby0]

If you are filing MFS you do not get an education credit/deduction for student loan interest paid---if that is the 1098 you are referring to.  Is it a 1098E for student loan interest?  If it is a 1098T you will not get education credit for that either since you are filing MFS.

And....you say you are using standard deduction, so entering a 1098 for mortgage interest will have no effect.

The 1099INT is taxable income so either one of you can enter it or split it 50-50 between you if you want to.   

[kelny]

Thank you!

We file separate so my student loan payments on based on my income only.

I figured the 1098- mortgage interest didn't matter but wasn't sure how to handle the 1099INT. 

[xmasbaby0]

One thing you need to be mindful of----if you enter the 1098 with mortgage interest and property tax paid, if somehow that puts you over the edge into itemized deductions---then your spouse will be required to itemize deductions too.   

[AmyC]

If you are in a community property state, split the 1099-INT in half. Otherwise, you can enter all or part in either return but beware which social is listed as you may need to make nominee entries. To make life simple, I would put it on the return that has the matching social.

The IRS has the form and the social and will be looking to match it up. If your social is on the form, the IRS will be looking at your return. When the IRS sees a community property state, they expect half of it. Otherwise, they will assume it is all yours. If you want part of it on your spouse's return, you have to make a second entry on your return explaining that some of it is being moved to your spouse's return.

Follow these steps for the owner of the 1099-INT:

1. Open your return to federal income
2. Select to enter interest income
3. Enter the 1099-INT
4. Continue
5.  Select that you need to make an adjustment.
6. Enter the amount and select it is for someone else.
7. Continue
8. Done