If my wife and I are filing separately, can we still split mortgage interest deductions?

Does this also apply to property taxes? And what about if we refinance during the year - does that complicate things?

Yes, the same principle applies to property taxes - you can only deduct the portion you actually paid. Each of you would claim your respective percentage of the property tax on Schedule A of your separate returns. For a refinance during the year, it doesn't necessarily complicate the splitting aspect, but you'll need to track the mortgage interest from both loans. The lender will provide a Form 1098 showing the total interest paid for the year, possibly one for each loan. Just maintain the same proportional split for both the original and refinanced loan interest.

How does this service work exactly? Does it just explain the tax rules or does it actually help with filing? Our mortgage is only in my name but we both pay for it from our joint account.

I'm skeptical about these online tax services. Can it really understand complex situations? Like what if we used funds from an inheritance for some payments and regular income for others?

It analyzes your specific tax documents and provides personalized guidance, but doesn't actually file for you. It's more like having a tax expert review your specific situation. For your case with the mortgage in just your name, it would explain exactly how to handle that properly when you both contribute. For complex situations with mixed funding sources, that's actually where it shines. It can analyze the full money trail and explain how different funding sources impact your tax treatment. It's much more sophisticated than general online advice because it focuses on your specific documents.

Wait, so this service somehow gets you through the IRS phone queue? How much does it cost? I've been trying to get through for weeks about a different issue.

Sounds like a scam to me. The IRS phone system is deliberately understaffed - how could some random service possibly get you through faster than everyone else?

It works by using an automated system that constantly redials the IRS for you and holds your place in line. When it finally gets through, it calls your phone and connects you directly to the IRS agent. You don't have to sit there redialing or waiting on hold for hours. The service doesn't give you any special access or priority - it just handles the frustrating part of constantly redialing and waiting on hold. The IRS doesn't even know you're using a service - when you're connected, you're just talking directly to them like normal.

Wait really? I thought that rule was eliminated with the 2018 tax law changes. Is this still in effect for 2024 filing?

Yes, this rule is absolutely still in effect for 2024 filing. The Tax Cuts and Jobs Act changed many things, but not this particular requirement. If you're married filing separately and one spouse itemizes deductions, the other spouse must also itemize deductions regardless of whether it's beneficial. This is one of the potential disadvantages of filing separately that you need to factor into your decision. If one spouse has significant itemized deductions but the other doesn't, the second spouse can't benefit from the higher standard deduction.

This is so important! We filed separately one year thinking we'd save money but lost eligibility for so many credits that we ended up paying more. Do the math with both scenarios before deciding.

This is really helpful advice! I'm curious about the documentation aspect you mentioned. Do you think it's enough to just have bank statements showing we both deposit equal amounts into the joint account, or should we be tracking something more specific? We've been married for years and have always just pooled everything together, so we don't really have separate records of who "owns" which portion of our income. Would the IRS expect us to retroactively figure out some kind of allocation method?

Bank statements showing equal deposits should generally be sufficient documentation for the IRS. You don't need to retroactively create complex allocation methods if you've been pooling income equally throughout your marriage. The key is being able to demonstrate a reasonable basis for your 50/50 split. What matters most is that you can show both spouses contributed to the joint account that paid the mortgage, and that the split you're claiming reflects your actual economic contribution. If you've both been depositing paychecks into the joint account regularly and in roughly equal amounts, that creates a clear trail supporting equal responsibility for the mortgage payments. Keep those bank statements, and maybe a simple summary showing your respective contribution patterns. The IRS generally accepts reasonable allocations when spouses can demonstrate they both participated in paying the expense. Your longstanding pattern of equal contributions actually strengthens your position rather than weakening it.

Thanks for sharing your experience! It's really reassuring to hear from someone who actually went through this. I'm curious about the student loan consideration you mentioned - we're in a similar boat where one of us has income-driven repayment plans. Did filing separately actually help with qualifying for lower payments, or were there other complications that made it not worth it in the end? We're trying to weigh all the factors before deciding, and the student loan piece is a big part of our calculation too.

Yes, filing separately definitely helped us with the student loan payments! My husband's income-driven repayment plan only considered his income instead of our combined income, which dropped his monthly payments significantly. The savings on loan payments more than made up for the lost tax benefits in our case. However, you really need to run the numbers carefully. We used a spreadsheet to compare the total financial impact - tax liability difference plus student loan payment difference for the whole year. Don't forget to factor in things like losing the American Opportunity Credit, earned income credit eligibility, and the student loan interest deduction itself when filing separately. Also heads up - if you do decide to go the MFS route for student loan reasons, make sure to coordinate with your loan servicer about when to recertify your income. The timing can matter a lot for maximizing the benefit.