Who should report interest income from mortgage (divorced people)?

[squidlady]

We got divorced last year. We still own a home and I live in it now and pay the mortgage myself. He paid part of the mortgage for a while last year until he moved out of the country. Every year we get a 1099-INT for interest income from our mortgage. My question is - since we are divorced and doing our taxes separately this year, which one of us should report this income? (It is only about $70.00 so won't impact our results in any significant way). Both of our names appear on the 1099.

I want to suggest that we BOTH show it is as income on our individual returns but maybe that's a bad idea.

Thank you in advance!! 

[MonikaK1]

If you are making payments on a mortgage, you would normally be paying interest and receiving a Form 1098, Mortgage Interest Statement, showing the interest you paid that may be deductible. If you are receiving a Form 1099-INT for a small amount, this represents interest income. This could happen if, for example, you have a savings account with the same bank that lent you the mortgage funds.

The person whose Social Security number appears on the 1099-INT should report the income on their return, so the IRS information return matching program will find it. If the interest-bearing account belongs to both of you, the one reporting the income can also report a deduction of half the amount and the other can report the other half as income on their return.

See IRS Publication 504 for more information on this topic (you can search the page for "mortgage" and "interest")

[squidlady]

Thank you so much for your reply. Let me please clarify with another detail:

MY SSN appears on the form, not his.

But BOTH our names appear.

Knowing this, which one of us should report the income?

Thank youi!!!

[MonikaK1 · Accepted solution]

The person whose Social Security number appears on the 1099-INT (you indicated that's you) should report the full amount of the income on their return, so the IRS information return matching program will find it.

However, you can make a separate entry in Less Common Income - Other Income with a negative number for 1/2 of the interest you reported with an explanation.

[squidlady]

Thank you so much. Yes, only MY SSN is on that particular form.

I appreciate the help, thank you!