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?
Click here to view their Form 1098.