How a recent IRS decision on mortgage interest is a bonus for unmarried couples

The IRS recently ruled on some aspects of the mortgage interest deduction. What this means is that an unmarried couple can each deduct mortgage interest on their own Schedule A. This doesn’t mean that a married couple can double the size of their mortgage and still deduct interest in full; in fact, there are rules around what qualifies as being “single” for tax purposes. But for many couples—especially those who live together but aren’t married—this ruling means that filing address, not marriage, is now one criterion by which you can qualify for tax-free mortgages.

You can also take advantage of the ruling if you’re married and filing a joint return. The IRS recently ruled on some aspects of the mortgage interest deduction, including married couples.

The IRS has decided that it will allow unmarried couples to claim a larger tax deduction for their mortgage payments. This is great news for unmarried couples who want to get rid of their second residence or downsize by selling off an old home and buying something smaller as an investment property or vacation home!

If you’re an unmarried couple, you can each deduct mortgage interest on your own Schedule A.

This is a big deal for couples with debt and high tax brackets who might otherwise have had to file a joint return.

If you’re married, the first $1 million of your mortgage interest can be deducted in full. But if you’re not married and filing jointly, that cap is gone.

This isn’t a huge deal for couples who don’t qualify for itemized deductions on their taxes—but it could be worth reconsidering if your situation has changed dramatically since last year (and it might well have).

The IRS ruling is an example of how two people living together can actually benefit from their single status when it comes to taxes.