Filing Separate—how to split 1098 mortgage interest statement

[pynkrosegrl]

My husband and I co own our home. We bought it in January 2024. We refinanced in October 2024. When we applied for the loan it started with our original lender but then transferred to Chase. We got 3 separate 1098 mortgage interest statements. Do we input all 3 statements? Also, we are filing separately (due to our student loans), so do we split everything on the statements (mortgage interest, property taxes, points paid, and outstanding mortgage principal)? Thank you in advance!

[KrisD15]

Yes, as long as the balance was never more than 750,000 total and the refinance was only to change the rate and did not pull out any cash, you can split everything in half.

If the loan was ever over 750,000 or you took out equity during the refinance, you'll need to make adjustments. 

If the first applies, and you can split everything in half, you still may have a difficult time with the TurboTax program. The section is a bit complicated since the rules of what can and can't be claimed changed several years ago. 

Enter the oldest 1098 first and go through the interview carefully. Make sure you indicate that this was only one loan, the original and then turned into a refinanced loan. 

Pub 936

[pynkrosegrl]

Thank you so much for your response. This is very helpful. The loan was under $750,000. We were also unsure if we should take the standard deduction or itemize, or would the program automatically decide for us?

[KrisD15]

The program will decide, but it will show you your options and give the option of changing the selection it makes. 

HOWEVER, if you don't itemize, the home mortgage interest is irrelevant.

Additionally, when Married Filing Separately, you both must do the same, both take the Standard Deduction or both Itemize Deductions.

The program will ask what the other spouse did on their return.