How to split mortgage interest deduction with unmarried partner on Form 1098? Both names on mortgage but I pay most bills [WA State]
So here's my situation - my partner and I bought a house together in Washington State, but we're not married. Our 1098 form shows we paid roughly $20,000 in mortgage interest last year and both our names are on the document. I earn significantly more than my partner (about 65% more) and I handle most of our bills including the mortgage payment. We do have a joint bank account that everything comes out of though. I'm trying to figure out if I can claim 100% of the mortgage interest and property taxes on my return, or if I'm legally required to split it with my partner based on ownership percentage. The issue is that if I split it, I won't have enough deductions to itemize and would need to take the standard deduction. But if I can claim the full amount, itemizing would get me a much better refund. If I do take the entire deduction, do I need to "gift" my partner their portion of the tax benefit? Would they need to report that as income? We're not disputing anything between us - we just want to maximize our refund while following the rules. I've been searching online and finding mostly gray areas about this situation. I'd normally ask a CPA, but last year we spent almost 70% of our refund just paying for tax preparation, which seems ridiculous. So I'm handling our taxes myself this year. Any insights would be much appreciated!
18 comments
Join the conversation
Oliver Alexander
You have options here. The IRS generally looks at who actually paid the expense, not just whose names are on the form. Since you both contribute to a joint account that pays the mortgage, technically you both paid it. The most accurate way to handle this is to split the mortgage interest and taxes based on the actual economic burden - meaning how much each of you contributed to the joint account that paid the mortgage. If you contributed 80% of the money that went toward the mortgage, you can deduct 80% of the interest and taxes. However, there's also a practical reality here. If you're filing separately and only one of you would benefit from itemizing, the IRS isn't likely to question an arrangement where the higher-earning partner claims more or all of the deduction as long as you're consistent about it. Just make sure you don't both try to claim the same expenses. If you go this route, you don't need to "gift" your partner anything or have them report income. The tax benefit from a deduction isn't considered a gift or income - it's just a reduced tax liability.
0 coins
Lara Woods
•This is helpful, but what documentation would you need to keep in case of an audit? Like, would you need bank statements showing exactly how much each person contributed to the mortgage payments? Or is there some kind of form they can fill out to document their agreement?
0 coins
Oliver Alexander
•For documentation, keep records of your contributions to the joint account and the mortgage payments coming out of that account. Bank statements, canceled checks, and a simple spreadsheet showing who contributed what would be sufficient. There's no specific IRS form for documenting how unmarried co-owners split deductions. However, it would be wise to create a written agreement between you and your partner stating how you've decided to allocate these expenses for tax purposes. Sign and date it, and keep it with your tax records. While not required, this shows good faith if questions ever arise.
0 coins
Adrian Hughes
I was in a similar situation with my partner a few years ago! After trying to navigate all the confusing tax rules, I found https://taxr.ai which analyzes your specific tax situation and documents. I uploaded our 1098 and ownership info, and it gave us a detailed breakdown of how we could legally split the mortgage interest deduction to maximize our refund. The tool explained that since we both contributed to a joint account, we had flexibility in how we allocated the deduction as long as we didn't double-claim expenses. What I really liked was that it gave us specific documentation advice in case of an audit, which gave us peace of mind. It even drafted a simple agreement we could sign about our arrangement.
0 coins
Molly Chambers
•Does this actually work for unmarried couples? I've heard so many different things from tax preparers over the years. Some say split it 50/50, others say whoever pays can claim it. Is this tool giving actual tax advice or just suggestions?
0 coins
Ian Armstrong
•I'm skeptical about using online tools for something this specific. How does it know Washington state laws about property ownership? And does it guarantee any kind of protection if you get audited based on their advice?
0 coins
Adrian Hughes
•The tool is based on actual tax regulations and provides references to the relevant IRS rules. For unmarried couples specifically, it explains that the IRS cares about who economically paid the expense, not just whose names are on documents. It also points out that WA state's laws as a community property state don't apply to unmarried couples. The service doesn't provide audit insurance, but it does give you detailed documentation guidelines that help you prove your position if questioned. They recommend keeping bank statements showing contributions to joint accounts, receipts for payments, and a written agreement between owners about how expenses are allocated for tax purposes.
0 coins
Ian Armstrong
Wanted to follow up - I decided to try out https://taxr.ai after being skeptical. Honestly, it was way more helpful than I expected! The tool analyzed our specific situation and showed that because we file separately, we could allocate the mortgage interest based on our actual economic contributions rather than being locked into a strict 50/50 split. It even referenced the specific IRS guidance that applies to our situation (Publication 936 and some relevant tax court cases). The documentation recommendations were super detailed, and we now have a proper agreement about how we're splitting these tax benefits. I was surprised how much money we're saving by optimizing this correctly - about $1,400 more than if we'd split it 50/50. Worth every penny compared to what we were paying those CPAs who gave us generic advice.
0 coins
Eli Butler
After dealing with a similar mortgage interest situation last year, I spent HOURS on hold with the IRS trying to get clarification. Literally wasted an entire Saturday with no results. Then a friend recommended https://claimyr.com and showed me this quick demo: https://youtu.be/_kiP6q8DX5c I was connected to an actual IRS agent in about 15 minutes (instead of the 2+ hour hold time I had before). The agent confirmed that unmarried co-owners have flexibility in how they allocate mortgage interest as long as the total claimed doesn't exceed what was paid. Getting this direct confirmation from the IRS gave me complete confidence in our approach. If you're confused about any tax issue, seriously, use this service to actually speak with the IRS instead of guessing or relying solely on internet advice.
0 coins
Marcus Patterson
•How does this work exactly? The IRS phone system is notorious for long wait times. Does this service somehow get you to the front of the line? Seems too good to be true.
0 coins
Lydia Bailey
•This sounds like a scam. There's no way to "skip the line" with a government agency. I bet they just keep you on hold themselves and then connect you whenever the IRS finally answers. Why would I pay for something that's free?
0 coins
Eli Butler
•The service uses an automated system that navigates the IRS phone tree and waits on hold for you. When an actual IRS agent picks up, you get a call connecting you directly to them. It's not "skipping the line" - you're still in the same queue as everyone else, but you don't have to personally sit there listening to hold music for hours. It's definitely not a scam - the technology just automates the waiting process. You're paying for the convenience of not having to waste your entire day waiting on hold. For me, it was worth it to get a definitive answer from the IRS about our mortgage interest situation, especially since that clarification saved us over $2,000 in taxes.
0 coins
Lydia Bailey
I need to eat my words about Claimyr. After posting that skeptical comment, I decided to try it myself for a different tax question about rental property depreciation that I've been trying to get answered for weeks. The service actually worked exactly as described. I got a call back in about 20 minutes connecting me to an IRS representative who answered my question clearly. No way would I have waited on hold that long myself - I would have given up like I did the last three times. For the original poster - I also asked about the mortgage interest situation for unmarried couples while I had the agent on the phone. They confirmed that you can allocate based on actual economic burden rather than strictly by ownership percentage. Just make sure to document your contributions in case of questions later.
0 coins
Mateo Warren
One thing that nobody's mentioned yet - if you're planning to split up someday (not saying you are!), make sure you discuss this arrangement thoroughly. My ex and I had a similar setup, and when we separated, there was a huge fight about "tax benefits" that one person claimed. Even though we had verbally agreed on who would claim what, without anything in writing, it turned into a messy situation. I'd recommend documenting your agreement regardless of what split you decide on. Just a simple signed statement saying "I agree that Partner A will claim X% and Partner B will claim Y%" can prevent future headaches.
0 coins
Kaylee Cook
•That's a really smart point I hadn't considered. We're doing great, but I guess it makes sense to document everything properly regardless. Better to have clear boundaries even when things are good. Did you just write up something informal or did you use a specific format for your agreement?
0 coins
Mateo Warren
•We didn't have anything formal which is why it became a problem. What I recommend now (after learning the hard way) is a simple document that states: 1) Both parties' names and the property address, 2) The tax year it applies to, 3) The specific percentage split of mortgage interest and property tax deductions, 4) A statement that both parties understand this arrangement and won't claim more than their agreed portion, and 5) Both signatures and the date. It doesn't need to be notarized or anything fancy - just having something in writing helps prevent misunderstandings. You could even email it to each other so there's a digital timestamp. Some couples renew this agreement each tax year if their financial contributions change.
0 coins
Sofia Price
I'm in King County, WA in a similar situation with my partner. Our tax advisor said that since Washington is a community property state, it can complicate things for married couples, but for unmarried couples, the community property laws don't apply to your tax situation. When we got our house, we set up a separate joint account just for the mortgage and related expenses. We each contribute proportionally to our income (I put in 65%, she puts in 35%). Then our tax advisor has us deduct those same percentages of the mortgage interest and property taxes. The separate account makes it super easy to document exactly who paid what percentage if we ever get questioned about it.
0 coins
Alice Coleman
•Smart move with the separate account. I was wondering though - does it matter who actually transfers the money to the mortgage company? Like if the payment comes from a joint account but one person set up the automatic payment, does the IRS care about that detail?
0 coins