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.
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{ 1 comment… read it below or add one }
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!