Our draft SA reads that I will claim the interest deduction for the 2009 tax year since I am paying the mortgage and reside in the marital home ('…wife shall be allowed to claim the mortgage interest deduction for the marital residence for 2009 and each year thereafter." We separated in March 2009. My stbx maintains that since we were not separated for the entire year, that he is entitled to interest deduction prior to the date of separation. Is his viewpoint accurate?
Related to this, does it really even matter? Since we were legally married for all of 2009, should we not just file our taxes and split the amount owed or refunded 50/50?
You may file your taxes jointly for 2009 and a joint filing usually is beneficial for both parties, though you should check with your tax preparer prior to filing any return.
As for the interest deduction, the language of the SA is irrelevant as it has not been signed. If you have been paying the mortgage and plan to file separately you may claim the decution.
We are trying to solidify the language of the SA as it relates to taxes. If we do file individually for 2009, he wants it to state that we both claim the interest deduction from Jan 1 -March 16 while we were still living together, but then I claim the portion from March 17 - December 31. I occupy the home and the mortgage is in my name only. Is this even legal to do? Seems like if we are filing individually, only one person can claim the interest for the entire year. If this is possible, it would make sense to do the same with interest on his student loans (acquired prior to marriage), correct?
No, you are correct and you should claim the interest.
It is legal (or at least the IRS hasn’t fussed at me about it when I split the mortgage interest deduction with my X) to split the mortgage loan interest, as long as both parties actually qualify to do so, and the numbers add up to no more than the numbers the IRS gets from the mortgage servicers.
If you do file “Married Filing Separately”, student loan interest is not deductible.