Is there a mortgage interest deduction unmarried couples can take? My partner and I bought a house together but we are not married. How do we split the home mortgage interest deduction?
No. There is no specific mortgage interest deduction unmarried couples can take. A general rule of thumb is the person paying the expense gets to take the deduction. In your situation, each of you can only claim the interest that you actually paid.
In order to claim the deduction you must have a legal ownership in the property and a responsibility to pay the mortgage. Generally, this means that you both are on the mortgage and responsible for paying the lending institution. However only one of you, typically the first person listed on the mortgage, will receive the 1098 mortgage interest statement.
To claim your mortgage interest deduction, even though you did not receive the 1098 you will need to complete Form 1040, Schedule A. Completing form 1040 requires that you itemize your taxes and not take the standard deduction.
After completing your 1040, Schedule A and recording the mortgage interest you are responsible for paying; you will also be required to attach a written statement detailing how much interest each party paid. The letter should include the name and address of the person who received the 1098.
Your options for your tax filing status if your spouse dies will change depending on how long ago they passed away. For example, you can generally use married filing jointly in the year your spouse passes. Then in the next two years, you can file as a qualifying widower if you meet certain requirements.
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For individual taxpayers, Schedule A is used in conjunction with Form 1040 to report itemized deductions. If you choose to claim itemized deductions instead of the standard deduction, you would use Schedule A to list your deductions. Your itemized total is then subtracted from your taxable income.
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