Can Unwed Couples Claim the Mortgage Deduction?

Even if you are not married, both parties in a relationship can claim the mortgage interest deduction. What you do is straightforward: follow the money. If you pay the entire mortgage, you claim the entire mortgage.

Calculate Shares of Deduction

To calculate your share of the deduction, multiply your monthly portion of the mortgage payment by 12. You can deduct this amount. If you pay percentages, calculate that percentage instead.

1098 Form

The IRS only issues one 1098 form, regardless of how many names are on the title or deed of a house. The person whose name appears first on the title will receive the 1098 form. This does not mean that only one person can claim these funds.

You will need to file a Schedule A return, explained below, and you will be able to separate your deductions accordingly on the Schedule A. It is ideal to make copies of the 1098 form for all parties listed on the title or deed of the home.

Completing Schedule A

The person receiving the 1098 form will enter their portion of the deduction on line 10. Those who are not included on the 1098 will enter their deduction on line 11. You will also include a note, “see attached,” for proof of home ownership and mortgage payments. This attachment should be a detailed statement of how much interest was paid by each person listed on the deed.

Finalizing Things

Some couples may choose to trade years to claim the entire deduction. Keep all tax records of who is filing when in case of audit. You deduct what you personally paid into the mortgage.

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