Rev. date: 12/21/2012
If you and your spouse file separate returns and one of you itemizes deductions, the other spouse will have a standard deduction of zero. In this situation, the other spouse should also itemize his or her
deductions.
- You may be able to claim itemized deductions on a separate return for certain expenses that you paid separately or jointly with your
spouse.
- Deductible expenses paid out of separate funds are deductible only by the spouse who pays them. For example, if otherwise deductible medical expenses are paid from an account that is owned by one of the spouses or, in a community property state, from an account that is the separate property of one of the spouses under the laws of that state, only that spouse may claim a deduction for the
expenditure.
- If expenses are paid from funds owned by both spouses such as a joint checking account or an account that is considered community property under the laws of the state in which the spouses reside, the deduction should generally be split between you and your spouse. For example, if otherwise deductible mortgage interest on a residence owned by both spouses is paid from a joint checking account, each of you would deduct half of the mortgage interest on your separate
returns.
- If, however, only one of the spouses is entitled to a deduction for the expense (for example, a payment of property taxes for property owned by just one of the spouses), only that spouse is allowed a deduction for the expenditure even if the expense is paid from joint funds. Each spouse must maintain records documenting who is considered to have paid the
expense.
Rev. date: 03/12/2013
Generally, to deduct an item on
Schedule A (Form 1040) (PDF),
Itemized Deductions, you must have been legally obligated to pay the expense and the expense must have been paid during the year. Even though two unmarried individuals may both be the legal owners of the home and pay the mortgage equally or from common funds, the lender will normally send out only one
Form 1098 (PDF),
Mortgage Interest Statement. Additionally, the local taxing authority may only provide a receipt in one taxpayer’s
name.
Taxpayers must take care in not deducting the same expenses on two separate returns. The taxpayers must determine the proportionate share of deductions based upon all facts and circumstances. If each taxpayer paid one-half of the expenses, then their Schedule A should reflect this. Please attach a statement to both your Schedules A explaining how you are dividing the mortgage interest and payments of real estate taxes. The person, who did not receive the Form 1098, will have to list the mortgage interest they are claiming on line 11 of Schedule
A.
As the information reported will not match the records submitted to the Service, please ensure that you keep your records on your split of the deductions for the mandatory review
period.
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