After Divorce, Who Claims the Mortgage Interest (1098) When Ex-Husband Was Awarded the Property?

Thanks for explaining that. So if I understand correctly, I would need to claim the mortgage interest on my Schedule A, but I'd also need to report the amount he paid toward the mortgage as income? That seems like I'm being penalized twice - paying taxes on "income" I never received and getting a deduction that doesn't really benefit me since I don't live there. How would I even calculate how much of his payments were interest vs. principal for reporting purposes? The 1098 only shows the total interest for the year.

You're right that it feels like a double hit, but tax law doesn't always align perfectly with personal situations. For the calculation, you don't need to separate principal and interest yourself - the 1098 shows the total interest paid for the year, and that's what you'd report as both income and a deduction if you itemize. The income and deduction would essentially cancel each other out in terms of tax impact, assuming you itemize deductions. If you take the standard deduction instead, then yes, you'd be recognizing income without the offsetting deduction benefit. Another option is to contact a tax professional to see if your divorce decree might allow for an alternative treatment in your specific situation.

How exactly does this work? Do they just explain the tax rules or do they tell you specifically what to put on which forms? I'm dealing with a similar situation where my ex got our rental property in the divorce but the mortgage is still in my name until she refinances.

I'm skeptical about these kinds of services. What makes them any more reliable than just asking a CPA? And how do they handle state-specific issues like community property rules that vary by state?

They actually give you specific guidance on which forms to use and what to enter where. They'll even explain which line numbers on the tax forms need to include specific information. It's much more detailed than just general tax rules. For state-specific issues, they actually have a knowledge base that covers all the different community property states and how the rules differ. They specifically addressed how Nevada's community property laws applied in my situation versus how it would be handled in Texas or California. They even pointed out a specific case ruling that applied to my situation.

Does this actually work? I've tried calling the IRS multiple times about a similar issue and got disconnected every time after waiting for hours. How much does this service cost?

This sounds like a scam. How can they possibly get through the IRS lines when everyone else has to wait? And I'd be worried about giving my personal tax details to some random service.

It definitely works! They use some kind of system that keeps dialing and navigating the IRS phone tree until they get through. When they reach an agent, they connect you immediately. It's not giving your tax details to them - they just get you connected to the IRS, and then you handle the actual conversation with the IRS agent directly. I was skeptical too, but it saved me from spending another full day on hold. And honestly, getting direct confirmation from the IRS gave me peace of mind that I was filing correctly. When you're dealing with divorce tax situations, the last thing you want is to do something that might trigger an audit or issues for either ex-spouse.

That's a good point - I'll need to dig through the decree again. It's about 30 pages of legal language, and I honestly haven't re-read all the details since signing. I was focused more on the property division and custody arrangements. Do you know what section this kind of tax provision would typically be under?

In my decree, it was in a section called "Tax Provisions" or "Tax Matters" toward the end of the document. Sometimes these provisions are also included in the property division section, especially if there's a paragraph specifically about the handling of the house during the transition period before refinancing. Look for any language about "tax deductions," "mortgage interest," or "temporary arrangements." If you can't find anything specific, it's worth asking your divorce attorney if this was addressed but just not clearly spelled out.

This is bad advice. Changing the mailing address for the 1098 doesn't change who's legally entitled to claim the deduction. The mortgage company reports the 1098 to the IRS under the social security number of the person legally responsible for the loan, not whoever's address is on file.

You're right that changing the address doesn't legally change who can claim it. I should have been more clear. My point was more about making sure both parties have the documentation they need for their respective tax filings, especially if they're going to coordinate who claims what based on their decree. The key is really what's in the divorce decree. If it specifies that the ex gets to claim the interest deduction despite the loan being in OP's name, having the documentation helps facilitate that arrangement.