Post # 1
Hi Bee’s –
Just curious as to what other Bee’s are doing or have done. FI and I own a home together and won’t be married before tax season.
I always do both of our taxes myself, but now I have to factor in the house. I’m not sure if it makes more sense to claim the credit all myself because I make significantly less than my FI, or to have us split it 50/50.
We are using our tax return to pay off most of the wedding vendors we’ve booked.
What are you or did you do?
Post # 3
Last year, FI claimed the entire credit, and we will likely do the same this year. For us, our other deductions were the deciding factor. FI needed to itemize deductions to collect the electric car tax credit, and the only way he could have gotten past the standard deduction threshold would have been to claim the entire house credit as well. I didn’t have any itemized deductions, so it would not have made a huge difference for me. When the refund came in, FI divided half of what we received for the house and gave it back to me in cash. We both own the house and are on the title, so we felt that was the fairest solution.
Post # 4
I ended up claiming it all because I itemized my deductions already.
Post # 5
Last year I claimed all of the house that we own jointly. We were engaged so there was zero point in fooling with trying to figure out how to claim half each. He was going to owe money and I was getting money back anyway so him claiming it would mean less money back.I do our taxes my self with the free file online so I figured out both ways. I ended up not putting anything about the house whatsover on his taxes… and claiming all of the house and interest deductions on mine. It worked out very well for us. If your putting it all to the wedding then don’t bother trying to split it just only one of you claim it.
This year is our first year married filing jointly. I’m excited.
Post # 6
run the numbers both ways and see what comes out better.
Post # 8
@Meant2Bee: it depends on your tax rate and if you qualify for itemized deductions. I’m in a much lower tax bracket than FI (I make less than 1/2 what he makes) but we’re having him claim all the credits & deductions this year to get him into a lower tax bracket.
I’d use Turbo Tax or similar to run the numbers for each of you claiming the credit & not claiming the credit to figure out which makes the most sense. If you still have separate finances, the person who claims the credit can split the resulting benefit. Good luck!
Post # 9
Our first unmarried year my husband filed the house taxes because he already itemized for his condo and I didn’t, he got much more back than I would have with my basic return.
One thing to note about this though…
We recently got a 1300 bill from the IRS stating that his property tax income was incorrectly claimed that year. That he claimed x amount and that his condo bank only reported x amount. SWe finally figured out that it was becausethey weren’t factoring in our new house. The reason being that I am the primary on the mortgage so the tax papers were filed in my name. After we sent the papers to back that up and clarified we got a letter recently again stating we have a zero balance (phew).
But the basics of that is, if the person filing the taxes is not the primary, and the primary’s name and SSN are on the reported mortgage forms, there’s an additional form you have to fill out that basically shows that you are claiming tax on a property that you own but wasn’t reported to your name. It’s totally ok to do it but my husband did his return through turbo tax and I THINK he was supposed to select that he had unreported property tax that he was claiming but he reported everything as “reported” by the bank. Hope that makes sense.
Post # 10
@MsJ2theZ: That makes perfect sense! So glad you posted that. I am the primary applicant on our mortgage so we would run into that exact problem. Thanks SO much!
Post # 11
- Wedding: March 2014 - A castle!
@Meant2Bee: We had an accountant do ours last year and we got more back if she put it all under FI’s name. I’m a student and he’s not. I think that had the most do to with it?
Post # 12
@Meant2Bee: NP! I am too (we didn’t choose they just did it that way), and after we got the bill from the IRS I called the mortgage company and asked if they could re issue the 1099 or whatever in HIS name and she said no it has to be issued in the primary’s. Luckily all is now resolved, he just filed wrong