My fiance and I bought a house in 2008. We are also going to be getting the $7,500 first time homebuyers loan. The home is in both of our names, but since he is the man, they put him first and our mortgage papers have HIS social security number as the borrower’s SSN.
We have to file taxes separately, obviously, since we are not married yet. Do we BOTH claim the mortgage interest on our taxes, or just one of us? And if we both do, how do we do it?
I have been wanting to just pay someone to do our taxes since it sounds so complicated but I paid $80 at a tax place last year JUST for my state taxes… we need every penny we can get and can’t afford to pay someone to do both of our taxes…who knows how much it will cost. We live in Indiana if that matters… no dependents. Any advice?
Sorry..typo.. In my title I meant mortgage INTEREST not insurance.
We are also both on the deed. Everything with it is 50/50.
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Mortgage insurance is not deductible. Only one of you can claim the interest. You would be double dipping otherwise and the IRS will nail you. If he is the owner on the deed, he need to file them.
I am not a tax advisor, however I have my share of accounting / finance experience.
I would guess that you should claim Interest proportional to contribution.
Say, together you paid $1,000 in interest at 5%. You contributed 12,000 and he contributed 8,000. Then you claim 600 and he claims 800.
However, I suspect that if you have a shared account and the mortgage payment is deducted from that account, you can appropriate Interest in whatever way is most beneficial to your taxes.
Split it 50/50… like Alex said.