Kari Posted January 15, 2011 Report Share Posted January 15, 2011 I have a client that gets a 1098 with her and her husband listed on the loan. Can she claim the interest deduction if they are not legally separated and he lives in the home without her? Or can they split the deduction? Quote Link to comment Share on other sites More sharing options...
Pacun Posted January 15, 2011 Report Share Posted January 15, 2011 "I have a client that gets a 1098 with her and her husband listed on the loan. Can she claim the interest deduction if they are not legally separated and he lives in the home without her? Or can they split the deduction?" If she is owner of the house, is liable for the loan and she paid the interest, she can. Keep in mind that there is only one social security listed on the 1098 and most likely it is not hers. Quote Link to comment Share on other sites More sharing options...
Pacun Posted January 15, 2011 Report Share Posted January 15, 2011 Kari, I checked your profile and there is no information about you. Are you in California? Quote Link to comment Share on other sites More sharing options...
Kari Posted January 17, 2011 Author Report Share Posted January 17, 2011 Kari, I checked your profile and there is no information about you. Are you in California? Yes, I have not registered my EFIN number with the ATX program yet. Should be this week. My dad just passed away, we worked together and I am using his program. Quote Link to comment Share on other sites More sharing options...
Kari Posted January 17, 2011 Author Report Share Posted January 17, 2011 "I have a client that gets a 1098 with her and her husband listed on the loan. Can she claim the interest deduction if they are not legally separated and he lives in the home without her? Or can they split the deduction?" If she is owner of the house, is liable for the loan and she paid the interest, she can. Keep in mind that there is only one social security listed on the 1098 and most likely it is not hers. Is it the person whos social security is listed the one who takes the deduction? Her husband is retired and would not benefit from the deduction. Quote Link to comment Share on other sites More sharing options...
OldJack Posted January 17, 2011 Report Share Posted January 17, 2011 The person that actually made the payments from their money takes the deduction. Quote Link to comment Share on other sites More sharing options...
Kari Posted January 17, 2011 Author Report Share Posted January 17, 2011 The person that actually made the payments from their money takes the deduction. Thank you for your quick response. Quote Link to comment Share on other sites More sharing options...
Kari Posted January 17, 2011 Author Report Share Posted January 17, 2011 The person that actually made the payments from their money takes the deduction. Not quite clear. If the wife's SS in not on the 1098, but her name is and she is paying the loan, can she take the deduction? Last year my dad (who did her taxes) said she could not take the deduction because they were not legally separated. Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted January 17, 2011 Report Share Posted January 17, 2011 Not quite clear. If the wife's SS in not on the 1098, but her name is and she is paying the loan, can she take the deduction? Last year my dad (who did her taxes) said she could not take the deduction because they were not legally separated. Rarely does the mortgage company list all social security numbers for the loan. The fact that her name is on the mortgage (she's responsible to make the payments) then you better believe her social securty number is associated with that loan. Usually the loan company only uses the primary borrower's social security number. I have had instances were three people were listed on the loan docs, all three made the mortgage payments, but only one was listed on the 1098. Again, if she is legally obligated, actually does make the payments, she would have a claim on the interest deduction. Deb! Quote Link to comment Share on other sites More sharing options...
Kari Posted January 17, 2011 Author Report Share Posted January 17, 2011 Rarely does the mortgage company list all social security numbers for the loan. The fact that her name is on the mortgage (she's responsible to make the payments) then you better believe her social securty number is associated with that loan. Usually the loan company only uses the primary borrower's social security number. I have had instances were three people were listed on the loan docs, all three made the mortgage payments, but only one was listed on the 1098. Again, if she is legally obligated, actually does make the payments, she would have a claim on the interest deduction. Deb! Thanks Deb, I think that clears it up. Quote Link to comment Share on other sites More sharing options...
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