I asked this question before and was told that as long as both names are on the mortgage interest form, we can split it 50/50 or however. But I realized that just one SSN is on the form but two names. I am guessing it is because there is not enough space? Does this matter?
No, it doesn't matter because there's only space for one SSN. Each of you will enter the portion of the interest (Box 1) that each of you actually paid. If each of you paid one half of the mortgage and real estate expenses, then each should reflect that on each tax return. Outstanding mortgage principal (Box 2), split equally if both of you are responsible for half. Box 3 is the mortgage origination date. If there is anything in Refund of overpaid interest (Box 4), allocate it the way you did the interest in Box 1 between the two of you. Mortgage Insurance Premiums (Box 5) and Points paid (Box 6), it’s the same concept, split equally if you both paid the same amount.
Don’t forget to allocate the property/real estate taxes that you may have paid. If you paid from an escrow account, it should be on your 1098 Mortgage Interest Form. If you didn’t pay from an escrow account, it will be on you tax statement.
Follow the instructions below, which will include an explanation statement with your tax return so the IRS will know how you split the interest.