1098 interest

[Super Mom]

I Have A Client Who Is Now Divorced (jan 2010) And Was Legally Seperated In 2009. They Lived In The Same House Because It Wouldn't Sell In 2009 And The 2009 1098 Is In Both Names. From My Understanding, They Must File Single And Do I Split The 1098 Interest Evenly?

They Want To Do Mfj For 2009, But I Don't See How I Can Do That Since There Was A Legal Seperation In 2009 Even If They Lived Together And The Divorce Wasn't Final Until Jan. 2010. Am I Right On That?

[JohnH]

I'll be interested to see other replies on this, but I think they CAN file MFJ if they want to do so. The legal separation allows one of them to file HOH if they meet the other conditions, but I think that's simply an option, not a requirement. I haven't handled one like this in a while so maybe I'm rusty on the rules.

[Hankster]

1098 Interest

If they so desire they can file MFJ until the divorce is final-Jan 10.

[Super Mom]

That's The Way I Read Mfj Rules In The Taxbook, But According To The Single Rules It Says Must Use That Status If Those Are True?

[ChEAr$]

That's The Way I Read Mfj Rules In The Taxbook, But According To The Single Rules It Says Must Use That Status If Those Are True?

Correct. See publication 17, page 22, middle column, about half way:

"Your filing status is single if, on last day of the year, you are unmarried or legally separated from your spouse under ... separate maintenance decree.... and you do not qualify for
another status, (e.g. HOH)."

[JohnH]

OOPS! In spite of my best efforts to the contrary, I learned something today.

[joanmcq]

Except that a legal separation is very different than just being separated. Was generally the option for couples in states where divorce was difficult or impossible to get. Make sure they really were 'legally separated'.

[Super Mom]

Thanks, I Will Check To Make Sure They Were "legally Seperated", If They Are, How Do I Do The 1098 Interest, Split It?

[Burke]

That's what I did for a divorced couple, who still own the house together, and each got 1/2 of the mtge interest and the real estate tax.

[joanmcq]

SuperMom, why are you capitalizing each word? It makes your posts really hard to read.

[Lion]

Prorate

I had one couple who prorated the mortgage interest and property tax based on their relative incomes.

[Super Mom]

Automatic

SuperMom, why are you capitalizing each word? It makes your posts really hard to read.

Sorry, I haven't capitalized each word. When I originally typed the post it was all caps, and the board automatically did that.