What kind of interest can you deduct off taxes??
Question by Melissa R: What kind of interest can you deduct off taxes??
We have our mortgage interest that can be deducted of course. But what other kind of interest payments can a person deduct?
We have a couple smaller installment loans. Two are for loans we got to pay off medical bills, and another is just an installment loan we took out to fix some things around the house.
Is the interest we paid against those loans, deductible on our taxes. Or just our mortgage interest (and student loan interest)??
Best answer:
Answer by Michael R
Usually only the interest on mortgage’s and students loans can be wrote off per say. However state income tax or sales tax is the next biggest thing you can write off (since your itemizing).
Then a gift to charity usually anything under 250 they don’t require proof. Say you donated some to your local police department or bought girl scout cookies. Who knows you might think of something you forgot.
Try medical expenses too. But usually it has to be a huge amount.
Anyway check out the links below one is to the Schedule A&B which is your itemized deducton form to see if you can write off anything else.
Know better? Leave your own answer in the comments!
Just mortgage interest, points paid on a mortgage, HELOC interest
Just your mortgage interest and student loans interest….nothing else. Uncle Sam is more interested in getting paid than in offering deductions, obviously, as usual.
Student loan interest is not deductible, it is an adjustment to income. Subtle difference but the adjustment will benefit taxpayers who do not itemize. Investment interest is deductible if you have any investment income.
Student loans are the only other ones I have been able to deduct, but I’m not really sure if there are others or not. Maybe there will be a tax expert on here that will have all your answers. 🙂