Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Itemized Deductions

Interest Paid

Topic Activity

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Joe and Angela file a joint return. During the year, they paid:

  • $2,180 to the bank for interest on their home mortgage that was reported to them on Form 1098 (all qualified)
  • $400 in credit card interest
  • $1,500 paid to lender for specific services connected to the loan (e.g., appraisal fee, notary fee, and preparation costs for the mortgage)
  • $2,000 in interest on a car loan

How much can Joe and Angela report as deductible interest?

$4,880
$4,080
$2,180
$0

Click here to view their Form 1098.


Joe and Angela.
Form 1098

Form 1098