“She started living there in July 2010. Can this husband and wife file a joint return?”--->In general yes; however, it depends. If they are married or considered married, their filing Status can only be Married Filing Jointly or Married Filing Separately unless the husband( or wife) did not live with his( her) spouse for last 6 months and meet certain conditions. If they are considered unmarried on the last day of the year, then either of them can file his or her return as head of household, HOH, as long he/she meets the criteria to file as HOH.He/she is considered unmarried for tax purposes if on the last of the year he/ she married but lived apart from his/her spouse for at least the last six months of the year. However, in this case, as she lived apart from her spouse for less than six months, she can’t qualify as a HOH filer. So, she should file her return as either MFJ or MFS with her spouse.
“ If yes can they claim the mortgage interest and real estate taxes paid on both properties?”---->As said above, they need to file their return as either MFJ or MFS. So, they can deduct their r/e taxes and mortgage interest expenses as long as they itemize deductions on their 1040 Sch A.
Asyou can see, by filing a joint tax return, both spouses report all their income, deductions, and credits. Both spouses must sign the return, and both spouses accept full responsibility for the accuracy and completeness of the information reported on the tax return.
The IRS cautions, "Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return.
Last edited by Wnhough : 02-27-2011 at 05:06 PM.