I co-own my home with my boyfriend. Can we both deduct the mortgage interest on our individual tax returns?
Question:
Answer:
If you are itemizing your deductions on Schedule A then you would follow the rules from Publication 936,
If you are both legally liable for the debt.
More than one borrower. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line.
Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. You should let each of the other borrowers know what his or her share is.
You each can deduct half of the value of the house or one or the other of you claim the whole thing on your taxes. If you are together I don't see much difference.
State laws vary. In some states it's not deductible at all (PA is one like that). If it's deductible for your state, you definitely would not both be able to claim the full amount. In many states, you'd have to treat it the same as you did at the federal level. In some states the person whose ssn is on the forms might be the only one who can deduct it, and in some states you'd be allowed to split it. So sorry, there's no "one size fits all" answer to your question at state level.
The previous responders who said that on federal you can either split it, or just one of you claim all of it, are correct.
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