changes in filing taxes after purchasing a home?
my fiance and i have been filing our taxes separately, and we both file as single parents. we're closing on a home loan today, and both of our names will be on everything. does this mean that when we file taxes we're going to have to start filing together?
- Chuckie OLv 71 decade agoFavorite Answer
One of you needs to file SINGLE, the other HEAD of HOUSEHOLD.
Which one? The one who supports the household expenses more than 50% is head of household. This is usually, but not necessarily, the one who makes the most money, assuming he or she can claim at least one child, see below.
The natural parents get priority on the children claimed; if you both are the natural parents of the children, work it out between you.
The itemized deductions are usually the one who pays them. But if your finances are comingled, money is fungible (love that word) so whoever it benefits, probably the one who gets paid the most.
The thing about "common law" marriage which someone suggests, it is only in a few states, and you have to present yourself as if you were married. The question's wording indicates that you don't consider yourselves married, with is a prerequisite for common law marriage.
Hope this helps.
- Bostonian In MOLv 71 decade ago
You cannot file a joint return unless you are married. One of you (NOT BOTH) can file as Head of Household once you move in together -- the one who pays more than half the cost of upkeep of the home -- if you are providing a home for a dependent child or other close relative.
You'll probably catch some responses referring to Common Law Marriage. Merely living together does not create a Common Law Marriage. You must live in a state that recognizes them AND meet that state's requirements to establish the CLM.
You can split the mortgage interest and property deductions if you both contribute to the payments. See the instructions for Schedule A for the additional documentation you'll need to attach to your tax returns since only one of your names and SSNs will be on the Form 1098 mortgage interest statement.
- JudyLv 71 decade ago
No, until you are married you can't file a joint return.
As far as the deductions for real estate taxes and mortgage interest, the person who pays them is the person who can deduct them. If you split the payments, split the deductions in the same proportions.
- Anonymous1 decade ago
You didn't say which state you live in. It might be possible for you to file a joint return if you live in a state that has common law marriages. The IRS does recognize common law marriages in these states. Some states like California do not recognize common law marriages.
The other anwser here is correct for all the other information he gave.