I know that tax season is still a while away, but I'm trying to get this figured out now.

My fiancé and I bought a condo together in May. We are both listed on the mortgage. For taxes, how do we go about who claims what? Can we split it? I was told that only one of us can claim it. He makes the majority of the mortgage payment. I was planning on filing as head of household since I have a 8 year old son. Also, we live in WI if that makes a difference.

Thanks in advance

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Originally Posted by Shell_Lee

I know that tax season is still a while away, but I'm trying to get this figured out now.

My fiance and I bought a condo together in May. We are both listed on the mortgage. For taxes, how do we go about who claims what? Can we split it? I was told that only one of us can claim it. He makes the majority of the mortgage payment. I was planning on filing as head of household since I have a 8 year old son. Also, we live in WI if that makes a difference.

Thanks in advance

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Call the IRS - free service and you'll hear it from the horse's patootie. Also I fyou make less than 50 or 55K you can use their software to file as it is the same software as Jackson Hewitt/Mikersoft and those sell. They have to allow IRS to use their software.

Rate, if you please.

You need to be a bit careful in choosing filing status: Head of Household means that you are unmarried, paid more than half the cost of the home you live in, and have a "qualifying person" living with you - in your case your child who is living with you. But since it seems that you are not paying more than half the cost of the household, you shouldn't file as head of household.

The full definition is here:

http://www.irs.gov/pub/irs-pdf/p501.pdf

As for deducting the interst on the mortgage (as well as any real state taxes on the property), you should split the amount of the deduction, based on how much each contributed to the mortgage and real estate taxes. You will receive a form 1098 from the bank in January or early February detailing how much interest was paid, as well as real estate taxes if they are included in your mortgage payment. You should each attach a note to your returns explaining how the deduction was split between you. The following snippet from http://www.irs.gov/pub/irs-pdf/p530.pdf (IRS Pub 530) explains how:

"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 write “See attached” to the right of that line."

Ebaines explains it rather well, but he focused on the mortgage payment for the cost of the household, while there ARE other aspects, like the cost of utility, food, transportation, etc.

Based on your input, you may or may qualify for Head of Household. I would need a LOT more information before making a firm call.

Of course, the EASIEST way to handle this is to get married before the end of the year, as your marital status on 31 Dec 07 dictates what your marital status for the entire year will be.