Thursday, May 13, 2010

My fiance and I bought a home last year. We are not married yet and need to do our taxes?

We need to claim our mortgage interest and taxes, and are filing separately. Should just one of us claim all the interest, or can we split it up?My fiance and I bought a home last year. We are not married yet and need to do our taxes?
Since you are not married then by law you can only file as single; unless one of you has children and can claim head of household. Only one can claim mortgage interest and property taxes on an itemized return.My fiance and I bought a home last year. We are not married yet and need to do our taxes?
My fiancee and I are in the same situation. We have a CPA prepare our taxes and I believe she gives us two options.





1) Have the person with the higher income claim 100%, or 2) splitting the taxes down the middle





Don't really think it makes much difference either way, but a CPA would be able to tell you how to maximize your return.





This is not something I would personally attempt without professional help. When I bought my house, I stopped doing my own taxes.
In this situation it would probably be best for one to claim the interest deduction, whichever one the 1099-int is sent to. You can split the interest between the two of you, but one of you will have to pick up the interest as income. Ex:The 1099 is in the bf's name. He can claim the interest deduction. Or he can split it with the GF, but he will have to list the amount claimed on her return as interest income. It can get very confusing and the way that will most likely be the most beneficial is with one claiming the deduction.

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