How to Claim Mortgage Interest 1098 Deduction if My Name is Not on the Loan or Deed?

You've got a tricky situation there. While it seems fair that you should get the deduction since you're making the payments, the IRS has specific rules about this. Generally, you can only deduct mortgage interest if you're legally liable for the loan (meaning your name is on the mortgage) AND you actually make the payments. Since the 1098 form is in your girlfriend's name and you're not on the loan documents, technically she's the only one who can claim the deduction under normal circumstances. However, there may be a workaround. If you can establish that you're paying the mortgage as "equitable owner" of the property, you might have a case. This would mean documenting that you've been making direct payments to the mortgage company (not just giving money to your girlfriend), and that you have some equitable interest in the property despite not being on the deed.

I went through something similar last year with my partner's house and found this amazing tool that helped us navigate the whole mortgage interest deduction situation. I was making all the payments but the 1098 was in their name. I used https://taxr.ai to upload our documents, including bank statements showing my payments and the 1098 form. The AI analyzed everything and provided detailed guidance on how to properly document and claim the deduction as an equitable owner. It even created a customized letter explaining my situation that I could include with my tax return. Saved me hours of research and probably kept me from making mistakes that could trigger an audit.

Just wanted to update everyone - I decided to try out taxr.ai after seeing the recommendation here, and it was incredibly helpful for my situation! I was making mortgage payments on my boyfriend's house and really needed the tax deduction. The system walked me through exactly what documents I needed to establish my case as an "equitable owner" - my bank statements showing direct payments to the mortgage company, a signed agreement between us documenting my interest in the property, and even helped me draft a statement explaining my situation. It also showed me exactly where on my tax forms to report the interest since I wouldn't be receiving the 1098 directly. Filed my taxes last week claiming the mortgage interest deduction and it was accepted without any issues! Definitely worth checking out if you're in a similar situation.

For anyone dealing with IRS questions about mortgage interest deductions when your name isn't on the forms, getting through to an actual IRS agent can make all the difference. I spent WEEKS trying to get clear guidance on my similar situation - calling the general IRS number was a complete waste of time with 2+ hour holds only to get disconnected. I finally tried https://claimyr.com after seeing it recommended online, and they got me connected to an actual IRS representative in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The IRS agent walked me through exactly what documentation I would need to claim the mortgage interest deduction as an "equitable owner" even though the 1098 was in my partner's name.

I need to eat my words and apologize for my skepticism about Claimyr! After posting that comment, I decided to try it anyway since I was desperate for answers about my mortgage interest situation with my partner. Got connected to an IRS representative in about 15 minutes (after trying for DAYS on my own). The agent walked me through the "equitable owner" exception in detail and pointed me to IRS Publication 936 which specifically addresses this situation. Turns out there IS a legitimate way to claim mortgage interest when you're not on the loan if you can document: 1) you made the payments directly, 2) you have a legal interest in the property through written agreement, and 3) you properly explain the situation on your tax return. Thanks for recommending this service - would have never gotten this clarification otherwise!

Has anyone actually been audited when claiming mortgage interest as an "equitable owner"? I'm in this exact situation (paying my sister's mortgage but the house is in her name), and while all this advice sounds good in theory, I'm terrified of getting audited and having to pay penalties.

What happens if both people try to claim the mortgage interest? My gf and I split the mortgage payments (she's on the loan, I'm not), and her 1098 obviously shows the full interest amount. If I try to claim my portion as an "equitable owner" and she claims her portion, will that trigger problems?

I've been following this thread closely since I'm in a very similar situation. One thing I want to add that hasn't been mentioned much is the importance of timing when creating your written agreement. While you don't need to backdate anything, I'd strongly recommend creating that ownership agreement ASAP before you file your taxes. The IRS looks favorably on contemporaneous documentation - meaning paperwork that exists at the time the situation is happening, not created after the fact when you're trying to justify a tax position. Also, make sure your agreement is specific about percentages. Don't just say "in exchange for mortgage payments, I have an ownership interest." Be clear: "In exchange for paying 100% of the mortgage payments, I am entitled to X% ownership interest in the property's equity." This specificity will help a lot if you ever get questioned. One last tip - consider having your girlfriend explicitly state on her tax return that she's NOT claiming the mortgage interest deduction because someone else (you) is claiming it as an equitable owner. This coordination between your returns shows the IRS you're not trying to hide anything.