Who gets to claim the mortgage interest rate deduction?
Carl asks: My partner and I own a home together. We are both listed on the mortgage, but the Form 1098 from the lender only lists my name and Social Security number. Who gets to claim the mortgage interest deduction?
ANSWER: If you own a mortgage on an eligible property you can deduct the amount of interest you pay, as long as you itemize deductions on your tax return.
Let's say Carl and his partner split the mortgage payment 50/50 during the entire year. Since they're both legally responsible for the mortgage, each one can claim 50% of the mortgage interest on their respective tax returns.
Lenders send out Form 1098 at the end of the year to document the total amount of interest paid on the mortgage. It's not uncommon for them to list just one borrower on the form, even when there are multiple borrowers.
Regardless of the name on the Form 1098 or who receives it in the mail, what's important is how much the mortgage borrower(s) paid in interest and how much.
To learn much more about this valuable tax deduction, watch my Mortgage Interest Deduction FAQ Video.
You'll find out the types of properties and loans that qualify, plus get the answers to several common questions, including whether you can claim mortgage interest if you make mortgage payments, but aren't listed on the mortgage.
********** Laura Adams is the award-winning author of Money Girl’s Smart Moves to Grow Rich. Get the paperback or ebook on Amazon.com!
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