Helping Parents with Mortgage

[dec1437]

I currently live with my parents and has been helping out with the payment. Both of my parents are now retired and one parent is receiving social security. Basically the burden is now on my husband and I to support the whole family. The mortgage is under parents' name and they applied for loan modification (without our knowledge) but is asking us to make the full mortgage payment. If the loan modification is approved, can my husband and I claim for the mortgage credit on our tax return since we are the one who is making the mortgage payment?

[Moe Bedard]

only they would be able to take a credit on their taxes for the interest just as if you were a renter and they are the landlords.

[~Jess~]

Check with your tax preparer. According to the IRS:

If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. Also, deduct your share of any qualified mortgage insurance premiums on Schedule A (Form 1040), line 13.

It appears to me that as long as your parents give you permission, you can write it off on your taxes. You and your parents cannot both take that deduction though. Also, just to confirm, it is not a tax credit, it is a deduction, and you only deduct the interest paid, not the full payment. HTH!

[Moe Bedard]

Jess............the statement would be referring to those that are liable for the mortgage. In some cases only one "payer" would receive a 1098INT form and the others that are co-borrowers would not.............that is the interest that is able to be divided between the borrowers that are on the mortgage note.


I just personally went through this at tax time with my son..........I pay the mortgage that his name is on alone............and the IRS advised me that I would be unable to claim the interest on my tax return.

[~Jess~]

Originally Posted by *** Damiano

Jess............the statement would be referring to those that are liable for the mortgage. In some cases only one "payer" would receive a 1098INT form and the others that are co-borrowers would not.............that is the interest that is able to be divided between the borrowers that are on the mortgage note.


I just personally went through this at tax time with my son..........I pay the mortgage that his name is on alone............and the IRS advised me that I would be unable to claim the interest on my tax return.

Bummer, thanks for clearing that up.