Can I claim Mortgage Interest Deduction when Mom's name is on loan but I'm on deed and make payments?

Thanks for the info! The mortgage company sends the 1098 to my mom each year. Do I need to get a copy of that from her to file with my taxes? Also, what exactly should this "statement" look like that explains I paid the interest? Is this something formal I need to submit or just something to have ready in case of audit?

Yes, you should definitely get a copy of the 1098 from your mom. When you file your taxes, you'll report the interest amount shown on the 1098, but since it has your mom's name and SSN on it, you'll need to attach a brief statement to your return explaining that you paid this interest and are entitled to the deduction. The statement doesn't need to be fancy - just include your name, your mom's name and SSN as shown on the 1098, explain that you have legal ownership in the property (on the deed), and that you paid 100% of the mortgage interest from your personal funds. Keep all your bank statements showing the payments as supporting documentation in case of an audit. It's a relatively small deduction, but it's legitimately yours if you paid the interest!

Did you actually have to mail in a paper return because of this situation? Or were you able to e-file even with the statement about the 1098 being in someone else's name?

This sounds helpful but I'm skeptical - how does the system actually verify you're really on the deed? Couldn't someone just lie about their situation and the system would generate a statement anyway?

I was able to e-file with my regular tax software. The statement just gets included as a PDF attachment with your electronically filed return. Most tax software has an option to attach documents or statements, and the IRS accepts these with e-filed returns. As for verification, the system doesn't independently verify deed records - it's designed to help you understand tax rules and generate the proper documentation based on what you report. You'd still be responsible for the accuracy of your submission just like with any tax filing. The value is that it helps you navigate complex situations and gives you confidence you're following IRS guidelines correctly. The statement it generates includes specific references to the tax code provisions that apply to your situation.

How does this service actually work? Do you have to give them personal info? Seems kinda sketchy to have a third party dealing with the IRS for you.

Yeah right. There's no way this actually gets you through to the IRS faster. The hold times exist because they're understaffed. How could some random service possibly bypass that?

The service doesn't actually talk to the IRS for you at all. You provide your phone number, and they have an automated system that waits on hold with the IRS. When an actual IRS agent comes on the line, their system immediately calls you and connects you directly with the agent. At that point, you're talking directly to the IRS yourself - the service just handled the hold time for you. They don't need any personal tax information - just your phone number so they can call you when an agent is reached. The entire conversation with the IRS is just between you and the agent. It's basically like having someone else physically hold a phone on speaker while on hold, and then they hand it to you when a person answers.

That's a really good point I hadn't thought about! My mom and I have different tax preparers, and I don't think she itemizes deductions anyway since she takes the standard deduction. But I'll definitely check with her to make sure there's no double-claiming happening. Would it be sufficient if she just signs something stating she's not claiming the interest, or do we need something more official?

Having her sign a statement that she's not claiming the deduction would be good documentation to keep with your records. It doesn't need to be notarized or anything super formal - just something that shows you both understand the situation. The most important thing is making sure she doesn't claim it on her return. If the IRS sees the same mortgage interest claimed on two different returns, it will almost certainly trigger a review. Since the 1098 has her SSN on it, the IRS computers automatically expect that deduction to appear on her return, not yours. That's why the explanatory statement with your return is so important - it tells the IRS why you're claiming a deduction that's linked to someone else's SSN.

That's actually a good question but doesn't apply in this case. Since both the mother and child are on the deed (both have ownership interest), the payments aren't considered gifts - they're considered payments toward the child's own property interest. If the child wasn't on the deed but was making payments, then yes, those could potentially be considered gifts to the mother. But with joint ownership, each payment is partially for the child's own benefit. The mortgage interest deduction follows who made the payment AND has legal ownership, not necessarily who is on the loan.