Married filing separately / How to split dollar amounts

[user17701539135]

Hello,

We are filing Married Filing Separately and are both taking the standard deduction to manage high student loans. We are married, live together, jointly own our home, and I have no income. There is no student loan interest due to the loans being in forbearance.

We have the following items to report:

A NY State inflation refund check in both our names (1099-G) for $300.

For our mortgage, we have a 1099-INT with $90 of interest and a 1098 showing $10,000 of mortgage interest in both our names.

We have a school and property tax bill in both our names.

A NYS STAR credit check in both our names for $200.

Lots of conflicting information online saying, 'they get reported by the person who paid them'... but we both paid everything together; joint accounts, everything in both our names. Which of these items, if any, must be split 50/50 between our separate returns when filing Married Filing Separately so that we don't double report? Also, would the school and property tax bill be reported at all if we are using the standard deduction?

I would imagine even though some of these items won't benefit us using the Standard Deduction, I would imagine we would still need to at least report it to the IRS when filing our taxes, right? We understand the tax implications of being married, filing separately, and not itemizing. Thank you.

[Vanessa A · Accepted solution]

The NYS Inflation refund would need to be split 50/50. If you did not itemize last year, then the NYS Inflation refund would not be reported .

The NY STAR credit is a state benefit, not income and not a tax payment, so it is not reported and does not affect the property or school tax deduction.

Mortgage interest would be split based on how it was paid.  So if you both contribute to a joint account and the mortgage is paid out of the account, then you would split it 50/50, same with the 1099-INT.  If you prorate how you contribute to the mortgage payment or deposit money into the account, then you would split the interest accordingly.  Ex.  You pay 30% of the mortgage and they pay 70% of the mortgage, then you would claim 30% of the interest and they would claim 70% of the interest. 

No, if you are not itemizing then you would not need to include the school or property tax bill on your return at all.  Be aware, that if one of you itemize you both must itemize. 

[xmasbaby0]

That you are trying to file married filing separately when one of you had no income is baffling.   And....if you are using standard deduction you do not enter mortgage interest, property tax, school district tax,  etc.   Those are itemized deductions .   Itemized deductions have no effect unless they exceed your standard deduction.

If you were legally married at the end of 2025 your filing choices are married filing jointly or married filing separately when you prepare your 2025 return.

Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $31,500 (+ $1600 for each spouse 65 or older)  for 2025. You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return.

 Some of the disadvantages of filing separately include: 

You cannot get earned income credit, 

You cannot get education credits or deductions for student loan interest. 

You cannot get the childcare credit

You have a lower amount of income on which to base the refundable additional child tax credit

85% of your Social Security benefits will be taxable even with no other income 

The amount you can contribute to a retirement account will be limited.

Capital loss deduction is less than if you file jointly

You cannot get the $6000 senior deduction

You cannot get the deductions for overtime or tips

 If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI) and your returns become very complicated.

 If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice since with online, you get one return per fee.

https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-file-taxes-jointly-or-separ...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/income/getting-married-mean-taxes/L2Rgma...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/married-filing-separately-commu...

[user17701539135]

Thanks for the quick response!

Just a question for clarification. I understand now reporting the 1099-INT because it is income.

But a forum online says not to report the Mortgage interest (1098):

"Because you are taking the standard deduction, mortgage interest paid from a joint account is not reported or claimed on your return. Mortgage interest is an itemized deduction, and by choosing the standard deduction ($15,750 for MFS in 2025), you are using a flat amount instead of listing individual expenses."

Your thoughts would be appreciated. Thank you!