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January 29, 2023
Question

I file married, filling separately. For mortgage interest, should I enter half or the whole amount from my 1098?

  • January 29, 2023
  • 1 reply
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Not quite sure what to enter into TurboTax to claim mortgage relief on my tax return.  Should I be entering the whole amount from my 1098 and TurboTax will half/split it automatically or should I half it myself and then enter that amount into TurboTax?

    1 reply

    Employee
    January 29, 2023

    When you file separate returns you have to divide the itemized deductions between the two of you in such a way that no more than 100% of the amount is being entered between the two returns.  No double dipping.  You cannot both claim 100% of the mortgage interest.  

     

    And.....are you in a community property state?   If so....you have rules to follow.

     

    https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

     

     

    Why are you filing separate returns--usually the worst way to file?

     

    If you were legally married at the end of 2022 your filing choices are married filing jointly or married filing separately.

    Married Filing Jointly is usually better, even if one spouse had little or no income. When you file a joint return, you and your spouse will get the married filing jointly standard deduction of $25,900 (+$1400 for each spouse 65 or older)  You are eligible for more credits including education credits, earned income credit, child and dependent care credit, and a larger income limit to receive the child tax credit. 

     

    If you choose to file married filing separately, both spouses have to file the same way—either you both itemize or you both use standard deduction. Your tax rate will be higher than on a joint return. Some of the special rules for filing separately include: you cannot get earned income credit, education credits, adoption credits, or deductions for student loan interest. A higher percent of your Social Security benefits may be taxable. Your limit for SALT (state and local taxes and sales tax) will be only $5000 per spouse. In many cases you will not be able to take the child and dependent care credit. The amount you can contribute to a retirement account will be affected. If you live in a community property state, you will be required to provide additional information regarding your spouse’s income. ( Community property states:  AZ, CA, ID, LA, NV, NM, TX, WA, WI)

     If  you are using online TurboTax to prepare your returns, you will need to prepare two separate returns and pay twice.

     

    https://ttlc.intuit.com/questions/1894449-married-filing-jointly-vs-married-filing-separately

    https://ttlc.intuit.com/questions/1901162-married-filing-separately-in-community-property-states

    https://ttlc.intuit.com/questions/1894449-is-it-better-for-a-married-couple-to-file-jointly-or-separately

     

     

     

     

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**