Unmarried couple / partners: Form 1098 (Mortgage) What amount to report on our separate tax returns?

[JamesPNW]

Situation:

My partner and I are unmarried and jointly own a house. We are filing single for the 2022 Tax year. I received the Form 1098 already.

Question:

When reporting the 1098 amount requested in TurboTax, do we split the total (e.g. each of us reports half the total amount), or do we report the full amount?

Some notes regarding what’s on the 1098:

1. My name and my partner’s name are on the mortgage.

2. My social security number is on the 1098 as the Taxpayer TIN. My partner’s is not.

3. We split the monthly mortgage payment 50/50, and I make the payment each month.

4. One tax preparer I’ve worked with in past years mentioned that my partner and I are free to divide it any way we’d like, but I’m also seeing other experts in various forums say differently, so now I am still confused.

Thank you in advance for any clarification you can provide.

[xmasbaby0]

You can divide the mortgage interest and property tax you are both paying 50/50 if you want to.   You certainly cannot both enter 100% of the amounts and double dip.   

And....homeownership may not even affect your tax due or refund.   Those home ownership deductions only affect your return if your itemized deductions exceed your standard deduction.

It is very hard for a lot of people to use itemized deductions now that the standard deduction is so much higher.  Your home ownership may not have any effect on your tax due or refund, especially if you purchased the house late in the year.  

Standard Deduction
Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach.  The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes. 

2022 STANDARD DEDUCTION AMOUNTS

SINGLE $12,950  (65 or older + $1750)

MARRIED FILING SEPARATELY $12,950  (65 or older + $1750)

MARRIED FILING JOINTLY $25,900  (65 or older + $1400 per spouse)

HEAD OF HOUSEHOLD  $19,400  (65 or older +$1750)

Legally Blind + $1750

[JamesPNW]

Thank you for your reply and insight @xmasbaby0 !

The next question: How do I input/edit the tax form so that I report that I paid for half of the relevant amounts originally listed in the 1098? I am using TurboTax Online (not the downloadable versions). 

[xmasbaby0]

Just enter half of the amounts.   That's it.   Let the other homeowner enter the other half on their tax return.   As already explained, it may not make a difference.   If you do not have enough itemized deductions to exceed your standard deduction, your refund or tax due will not be affected.