Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.
01-31-2018 08:05 AM
My ex and I divorced several years ago then reunited in 2015, but didn't remarry (we planned to remarry in 2017 but didn't). We have an almost grown child (age 17) and we have owned our home jointly for just over a year. Our concern is getting the most deductions for each of us. We know we must file separately, however, we aren't sure how owning our home together affects us. Does only one of us claim the interest paid on the loan? What other things must we consider?
02-02-2018 11:52 AM
Hello, A few things come to mind with your situation. The document that reports the mortgage interest comes in one person's social security number. Who would that be Then another who is actually paying that mortgage interest and the property taxes. Whomever is providing more than half of the household support (paying the mortgage, property taxes, etc) would qualify to file as head of household. The other would be filing as single. Property taxes can only be deducted by the party responsible for such. (whose name do they come in?) If indeed you are actually splitting the mortgage interest, you could split that figure, but would have to indicate that the person who does not have their name showing on the mortgage statement enter the amount as not being reported on a 1098 statement.
Depending on the amount of mortgage interest paid, you need to see if itemizing and using that expense helps you. the standard deduction amount for HOH is 9350; for a single person 6400.
Use some of this information to see how you will proceed.