Filing separately

[Poed]

I need advice. This year I am thinking of filing separate return instead of the usual joint return. Our incomes are high but not too close. I earn about 140K and she earns about 95K. If we file separate returns and itemize, are there complications with deductions? I itemize deductions every year. One of those deductions is a sizable mortgage interest deduction. Do we need to claim half of this deduction for each of us if we file separate return? Or can one of us claim the entire mortgage interest deduction while the other one claims our child as dependent. The mortgage is paid in full by me with no contribution from her and I feel that the deduction should be mine alone in case we file separately. What does the IRS require in this case? Thanks.

 

[kirby]

Are you in a community property state?

 

[kirby]

And is the mortgage in both your names or just yours?

 

[Poed]

No. I am not in a community property state. The mortgage is in both of our names but I had been paying it all by myself due to her refusal to contribute.

 

[kirby]

For your wife to claim the entire exemption for your child, you give her a written statement that says you will not claim the child for tax year x and you sign it . Then she fills out a form 2120 and submits that with her return.
Same for mortgage interest deduction, best for you if she gives you a written and signed statement that you paid all the interest for tax year x. If she will not do so , you can still claim it all as you have proof you paid it all

 

[Poed]

She won't sign any statement. She is demanding that we split the deduction in half and claim 50% of deduction on each of our returns. I didn't know one can even do that. Lets say the deduction is 16000. She wants to claim 8000 on her return and 8000 on my return. I don't want to do that since I had paid every penny of mortgage. I want to claim all the deduction. I am willing to let her claim our child as deduction since I am taking all the deduction for mortgage.

 

[kirby]

To encourage her to allow you the full mortgage deduction - given that you have proof that only you paid - you might ask her to consider that if she claims payment when she did not do so then she is filing a fraudulent return. This may not register with her at this point. Also doesn't mean you've won as the easiest thing for irs to do when both claim the deduction over its true amount is to divide it by two. They are not going to sit and review checks.
Things sound bad and I'm sorry about that.

Sorry...