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mortgages interest during tax season?!

Regular Contributor

mortgages interest during tax season?!

my fiance and i bought our first home.  we are both on the note/loan.  we are both on the title.  we both contribute, heavily into the property as a union should.  we have no children.  we fixed up the property and furnished as best we could.  we closed in late june. 

 

we put down 20%.  closing costs were another 8k on top.  between the both of us we came out of pocket a little over 50k.   we didnt have to escrow insurance or taxes.  the agreement we shook on with the terms of our housing situation....i would cover mortgage (860) and utilities (estimate 400) and upkeep as best as i could (if heater busts or roof leaks bla bla)  she agrees to cover monthly taxes (550)... also, she agrees to farm the land and grow tomatoes.  kidding....i buy the tomatoes at the supermarket.  i digress....

 

im a blue collar fellow and make about 48k a year.  my fiance has a base of 59k plus almost 30k a year or more in bonuses.  we are not married.  our wedding is right after tax season. 

 

how do we navigate this as best as we can with regards to taxes?  who claims what?  does it really matter?  is there an advantage or disadvantage?   the mortgage is automatically deducted from my checking account.  we do not have a joint account.  when our quarterly taxes are due my fiance drives to the town center and pays them directly herself via cash, credit card or check....

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Regular Contributor

Re: mortgages interest during tax season?!


SantaMar wrote:

my fiance and i bought our first home.  we are both on the note/loan.  we are both on the title.  we both contribute, heavily into the property as a union should.  we have no children.  we fixed up the property and furnished as best we could.  we closed in late june. 

 

we put down 20%.  closing costs were another 8k on top.  between the both of us we came out of pocket a little over 50k.   we didnt have to escrow insurance or taxes.  the agreement we shook on with the terms of our housing situation....i would cover mortgage (860) and utilities (estimate 400) and upkeep as best as i could (if heater busts or roof leaks bla bla)  she agrees to cover monthly taxes (550)... also, she agrees to farm the land and grow tomatoes.  kidding....i buy the tomatoes at the supermarket.  i digress....

 

im a blue collar fellow and make about 48k a year.  my fiance has a base of 59k plus almost 30k a year or more in bonuses.  we are not married.  our wedding is right after tax season. 

 

how do we navigate this as best as we can with regards to taxes?  who claims what?  does it really matter?  is there an advantage or disadvantage?   the mortgage is automatically deducted from my checking account.  we do not have a joint account.  when our quarterly taxes are due my fiance drives to the town center and pays them directly herself via cash, credit card or check....


Since you both are on the note/loan and responsible for the payments, you can split the deductible amounts between the 2 of you however you would like. I do the taxes for my family and my sister and her boyfriend did the same thing you are doing - I work each of their taxes using various splits (50/50, 75/25 100/00) and choose the one that maximizes the total refund. Usually that is by having 1 person take all the itemized deductions and having the other one uses the standard deduction - but YMMV. As long as the total claimed between the 2 of you does not exceed the total allowed, you have a lot of flexibility. 

FICO: EQ 769, TU 762 , EX ???

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