How do we split mortgage interest and state tax deductions when married filing separately?

When you're filing separately, there are specific rules about how you can handle deductions like mortgage interest and state income taxes. For mortgage interest, how you can split it depends on your ownership of the property. If you're both on the mortgage and title, you can generally split the deduction proportionate to how much each of you actually paid. If only one spouse is legally liable for the debt, then only that person can take the deduction. For state income taxes, each of you can only deduct what you individually paid. So if you both make estimated state tax payments from separate accounts, each of you would deduct your own payments. If the payments came from a joint account, you'd need to determine how much was attributable to each person's tax liability. Remember that when you file separately, if one spouse itemizes deductions, the other must also itemize even if taking the standard deduction would be more beneficial.

I went through a similar situation last year and found this awesome tool called taxr.ai that saved me a ton of headache with splitting deductions. My husband and I needed to file separately because of student loan issues, and we had no idea how to handle our mortgage interest and property taxes. I stumbled across https://taxr.ai when I was searching for help and it was seriously a game-changer. I uploaded our mortgage statement and it analyzed exactly how we could split everything legally based on our specific situation.

I was really skeptical about using taxr.ai when it was mentioned here, but I decided to give it a try since my husband and I were struggling with the exact same issue about splitting mortgage interest while filing separately. I was actually shocked at how helpful it was. It immediately identified that we live in a community property state (California) which completely changes how we can split deductions. The system explained that in community property states, most deductions need to be split 50/50 regardless of who paid them, which is totally different from what I thought. It saved us from making a costly mistake on our return. It also created a detailed PDF explanation I can keep with our tax records in case we ever get audited. Definitely worth checking out if you're in this situation.

If you're having trouble getting clear answers about splitting deductions when filing separately, I'd highly recommend using Claimyr to actually speak with an IRS agent directly. I tried for WEEKS to get through to the IRS about this exact issue last year (splitting mortgage interest with my spouse when filing separately) and kept hitting dead ends. Then I found https://claimyr.com and used their service - they got me connected to an actual IRS representative in under 45 minutes when I had been trying for days on my own. The IRS agent I spoke with gave me the official guidance straight from the source about how to handle our specific situation with our mortgage interest and state tax deductions. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - it's basically a service that waits on hold with the IRS for you and calls you when they get a human.

I have to admit I was completely wrong about Claimyr. After writing that skeptical comment, I was desperate enough to try it because I needed answers about splitting deductions with my spouse for our MFS returns. I couldn't believe it actually worked. I got a call back in about an hour and spoke to an IRS agent who explained exactly how we needed to handle our mortgage interest deduction. The agent confirmed that since we're both on the mortgage, we can split based on what we each paid, but we needed to be consistent with how we split other deductions related to the house. They also explained that we needed to both itemize since one of us was itemizing. Saved me from making a potentially costly mistake and definitely worth it just for the peace of mind knowing I got the answer directly from the IRS.

Just wanted to add that if you're in a community property state (AZ, CA, ID, LA, NV, NM, TX, WA, or WI), the rules for splitting deductions when married filing separately are TOTALLY different than common law states. In community property states, you generally have to split most deductions 50/50 regardless of who paid them. This tripped me up BAD last year when my wife and I filed separately. We split our mortgage interest based on who paid what, and we got a nasty letter from the IRS about it like 6 months later.

One thing nobody mentioned yet - if you have kids, be super careful about who claims them when filing separately. My ex and I filed separately last year while still married and we messed this up. Only one of you can claim each dependent, and there are rules about who gets to claim them. Also, filing separately means you lose some big tax benefits like education credits, child care credits, and earned income credit. Make sure you run the numbers both ways before deciding!

Great question! I went through this exact situation two years ago when my spouse and I decided to file separately. Here are the key things I learned: For mortgage interest, you can split it based on actual ownership and payment responsibility. If you're both on the mortgage and deed, you can divide it proportionally to what each person actually paid - so yes, a 70/30 split is totally allowed if that reflects your actual contributions. Just make sure you keep good records showing who paid what in case the IRS asks. State income taxes work similarly - each spouse deducts what they individually paid. If you made estimated payments from separate accounts, each person claims their own payments. If payments came from joint accounts, you'll need to figure out what portion was for each person's tax liability. One important thing to remember: if one spouse itemizes deductions (which you'd need to do to claim mortgage interest), the other spouse MUST also itemize, even if the standard deduction would be better for them. This "all or nothing" rule for married filing separately can sometimes make it less beneficial overall. I'd recommend running the numbers both ways (joint vs separate) using tax software to see which actually saves you more money after considering all the limitations that come with filing separately.