Ask the taxgirl: Credit Card Debt

April 9, 2008 · 1 comment

Taxpayer asks:
I spent most of last year paying off my credit card. A friend told me that this was deductible but I don’t know where to put it on my taxes. Where does it go?

Taxgirl says:

I’m guessing that your friend hasn’t filed a tax return since the Reagan era…

Personal debt (other than student loan interest and mortgage loan interest) is not deductible on your personal income tax return. It used to be – years ago – but was eliminated under the sweeping tax changes made in the Reagan era.

Congrats on paying off the debt. It’s not deductible – but don’t you feel better being debt free?

Thanks for reading!

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

Have a question? Ask the taxgirl!

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{ 1 comment… read it below or add one }

1 Bridget Wright April 9, 2008 at 8:33 am

Paying off credit cards is like, like a sort of empowerment or like an immediate “high”. You instantly feel amazing after you mail them the check for the full payoff amount and good-bye! Good stuff!

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