Should I claim that I owned a home in 2016 if my husband is filing the full amount on his tax return? We are filing separately.

[anhorton]

My husband and I got married in October. Prior to that we were renting an apartment and splitting the cost of rent. Should we both claim the apartment expense and split it? Or could one of us claim it since we are married. Also, we purchased our first home jointly but the paperwork came in his name. Is it ok for him to claim all of it? We must file separately.

[TomD8 · Accepted solution]

Are you sure you want to file separately?  Filing a joint return results in a lower tax bill for most married couples.  One of the biggest disadvantages of filing separately is that, if one spouse itemizes, the other must itemize too - even if their standard deduction would be much greater.

Rent and rental expenses are not deductible on a federal return.  Some states offer a renter's credit.  If your state is one of those, you'll be asked about it in the TurboTax interview on your state return.

The only deductible expenses with a new home purchase are mortgage interest, property taxes, mortgage insurance premiums (if any), and points (if any).  Your husband can deduct the portion that he actually paid.

[anhorton]

We must file separately due to my income-based repayment plan on my student loans. If we file jointly, I'll lose my loan forgiveness in a few years since our income would increase.  

We have had a joint bank account since we owned the home. Is my husband able to deduct the entire portion? If so,  when I am setting up my account, it asks if I owned a home in 2016, do I still select "yes"?

[TomD8]

If the expenses were paid out of a joint account, your husband can deduct the entire portion.  You can still select "yes" to the ownership question.  Note that if you file separately and live in a community property state, the rules may be different.