What are my Chances of Getting Audited for an Unusually Large Tax Deduction?

I'm freaking out that I might have seriously messed up my taxes this year. I'm looking at this massive deduction on my return and thinking the IRS is definitely going to flag this. Here's the situation: I'm the primary person on a mortgage deed and I handle making all the payments. The problem is there are two other people who are technically co-owners on the mortgage, but they've completely disappeared. They moved out of state about a year ago and I have zero way to contact them - they don't answer calls, texts, nothing. So now I'm worried about two things. First, I took the entire mortgage interest deduction on my taxes because I'm literally paying 100% of it. But my income doesn't really match up with such a big deduction, which feels like an audit red flag. Second, I know those two other people are going to receive 1098 forms showing mortgage interest paid, but they have no idea how to handle this on their taxes since they didn't actually pay anything. Has anyone dealt with something similar? I'm seriously stressing about the IRS coming after me for this.

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19 comments

Sophia Clark

•8M

This is definitely a tricky situation, but not as uncommon as you might think. The IRS cares about who actually paid the mortgage interest, not just whose names are on the deed or mortgage. If you're the one who made 100% of the payments, you're entitled to deduct 100% of the interest—regardless of what your income is. The mismatch between income and deduction size isn't automatically an audit trigger. The IRS understands that people can have housing costs that are high relative to their income. The bigger issue is coordination with the co-owners. Even though they've gone "ghost," they'll receive 1098 forms showing mortgage interest that was paid. Technically, they should not claim any of the deduction since they didn't pay any of the interest. You might want to keep documentation showing you made all the payments (bank statements, canceled checks, etc.) just in case questions come up. Also, consider sending them a certified letter explaining the situation and clarifying that you're claiming the full deduction since you paid 100%. Even if they don't respond, you'll have documentation that you attempted to communicate with them.

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Sophia Clark

•8M

You don't need to attach a note to your return—the IRS doesn't really have a process for reviewing explanatory notes with standard returns. Just make sure you have your documentation organized in case questions come up later. As for audit chances, they're still relatively low. The IRS audits less than 1% of returns overall. Having a large deduction relative to your income might increase your chances somewhat, but it's not guaranteed to trigger an audit. The key is being able to substantiate the deduction if questioned—which you can do since you actually made the payments.

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Madison Allen

•8M

I was in a similar situation last year and discovered taxr.ai (https://taxr.ai) which honestly saved me so much stress. I had a complicated mortgage situation with my ex where I was making all the payments but we were both on the paperwork. I uploaded my mortgage statements and other docs to the site, and it analyzed everything and gave me clear guidance on exactly how to handle the deduction properly. What I really liked is that it explained the potential audit risk factors and gave me a checklist of documentation to keep on hand in case questions came up. It even generated a letter I could send to my ex explaining the tax situation. All without having to pay for an expensive tax professional consultation.

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Madison Allen

•8M

The document analysis is actually really thorough. You just upload whatever you have - mortgage statements, payment records, communication with co-owners - and it organizes everything by relevance and explains what each document helps prove. It was especially helpful with my bank statements showing I made all the payments. As for the legitimacy question, I was skeptical too at first. But the platform actually cites the specific IRS regulations and tax court cases that apply to your situation. You can see exactly which rules they're basing the advice on. It's not just making guesses - it's applying established tax law to your specific documentation. I double-checked some of the references with information on the IRS website and it all matched up.

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Justin Evans

•8M

Just wanted to follow up about my experience with taxr.ai. After being super skeptical in my comment above, I decided to try it anyway since my situation was similar (joint property but I'm paying everything). I'm actually really impressed. It analyzed my mortgage statements and payment history and showed me exactly what parts of the tax code applied to my situation. It even gave me a "risk assessment" that showed my audit risk was medium-low because I had good documentation proving I made all the payments. The best part was it generated a custom letter I could send to my co-owner explaining the tax situation and asking them to confirm they wouldn't be claiming the deduction. Got it all handled before filing and feel way more confident now!

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Emily Parker

•8M

If you're worried about potential IRS issues, you might want to check out Claimyr (https://claimyr.com). I was in a panic last year when I got a letter questioning a large deduction on my return. Tried calling the IRS for weeks and couldn't get through to anyone. Claimyr helped me skip the ridiculous hold times and actually got me connected to a real IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was able to explain my situation directly to the agent, who confirmed I was handling things correctly and noted my file so there wouldn't be issues later. Having that conversation directly with the IRS gave me huge peace of mind versus just wondering if I was doing it right.

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Emily Parker

•8M

It's not magic - they use a combination of technology and timing to navigate the IRS phone system more efficiently than an individual can. They basically have a system that continuously dials and navigates the initial prompts until a line opens up, then connects you directly. Think of it like having a bot wait on hold for you. They're definitely not keeping you on hold themselves. The service connects you directly to the IRS - you're talking to actual IRS agents, not intermediaries. I was skeptical too until I used it and was speaking directly with an IRS representative who could see my tax records and answer my specific questions. You know it's legit because the IRS agent asks you authentication questions that only the real IRS would know to ask.

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Victoria Scott

•8M

I can't believe I'm saying this, but I owe an apology for my skeptical comment above. After waiting on hold with the IRS for over 3 hours and getting disconnected TWICE, I broke down and tried Claimyr out of desperation. I was connected to an actual IRS agent in about 20 minutes. The agent was able to pull up my file, verify my identity, and directly address my questions about mortgage interest deductions with multiple owners. She even noted in my file that I had called to clarify the situation. For anyone with a complex tax situation like this where you really need to talk to a human at the IRS, it's absolutely worth it. Saved me literally days of frustration and gave me actual answers from an official source rather than just guessing.

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Benjamin Johnson

•8M

Form 8275 won't necessarily reduce your audit risk—it might actually increase initial scrutiny. The benefit is that it shows good faith and transparency, which can help avoid penalties if the IRS does question your return. In your specific case, since you have documentation supporting your deduction, you probably don't need the form. Form 8275 is more commonly used for positions that have less clear IRS guidance. Since mortgage interest deductions are well-established, and you have documentation showing you made the payments, you're likely fine without it. Just keep your payment records organized in case questions come up.

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Debra Bai

•1d

I went through something very similar about 3 years ago when my roommates bailed on our shared mortgage. The stress was unreal, but here's what I learned: the IRS really does focus on who actually made the payments, not just whose names are on paperwork. Keep detailed records of every payment you made - bank statements, online payment confirmations, even screenshots of your online banking. I created a simple spreadsheet showing each monthly payment with the date, amount, and payment method. This documentation was crucial when I got a CP2000 notice (not a full audit, just a matching discrepancy). One thing that helped me was getting a letter from my mortgage servicer confirming that all payments came from my account. Most servicers will provide this if you call and explain the situation. It's official documentation that supports your position. The reality is that mortgage interest deductions, even large ones, are pretty common and well-understood by the IRS. As long as you can prove you made the payments, you're entitled to the full deduction regardless of what your co-owners do with their 1098 forms. Just make sure you're prepared to back up your claim with solid documentation.

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