Is credit card interest tax deductible except for mortgage payments?

[Bobbieo]

[dragonlady]

1. No

It hasn't been for quite a few years. The interest on your mortgage is deductible on Schedule A if you itemize.

[Canuckistanian]

2. You're taxed for credit card interests?

Since when do CC debts have anything to do with the IRS?

I realize that you can write off business losses, but I don't think that includes interest charges.

[Bobbieo]

4. That's waht I tried to tell a friend but he says his CPA takes off credit card interest.

I know he has been audited once and I think he's crusin' for another audit.

[wakeme2008]

5. before Reagan you could

count all interest and take it off your income. When you start adding up all interest beyond mortgage, (car etc) it was a nice write off.

[Straight Shooter]

3. No. But it might be if it's for a business-related expense.

Check with your accountant, or look up Turbo Tax online http://turbotax.intuit.com/ because they have a lot of great info. You might find some good deductions you haven't considered.

Good luck with your taxes. It took me 15 years to get a clean slate and stay ahead of the game. :thumbsup:

[Warpy]

6. Thank REAGAN for not being able to deduct it

just like I "thank" that fucking asshole annually for ensuring that uninsured people can't deduct out of pocket health care expenses that don't exceed 7.5% of their gross income.

[gristy]

7. Before you get too upset with Reagan w.r.t. credit card debt, ask yourself

What would the consequences of a revenue neutral tax change where credit card interest was made deductable?
Would making credit card interest deductable tend to encourage people to take on credit card debt?
Would tax credits and/or lower taxes for the poor make more sense?

[Sherman A1]

10. Agreed

As much as I enjoyed being able to take the deduction on CC interest in the pre Reagan "we are fixing everything" days. It really was just one more encouragement to maintain high interest debt. It took me years (an ex wife that loved to spend and the subsequent divorce) to clear the debt, but just using CC's every month then paying them off completely is wonderful.

[NormanYorkstein]

14. It's a subsidy for lenders

I wish my products were tax deductible as well.

[dflprincess]

11. While you make some good points

I sincerely doubt Reagan's intention was to encourage people to lower their credit card debt. Along with making it harder to deduct medical expenses, this change was just another way to stick it to the middle class.

[Possumpoint]

12. I'm Sorry

IMHO our income tax system is totally screwed up, sliding scales, loop holes, some things deductible, others not. If we have to have it I want a flat tax, no deductions.

[A Simple Game]

13. I am happy for You. Really I am.

I just wish I was rich enough to want a flat tax.

Oh well, there is always the lottery.

[Warpy]

17. Sure, tax people making under $20,000/year 33% on their earnings

and give the people who are paying 39% on the bulk of their earnings a big fat tax cut.

Yeah, that makes a LOT of sense.

Flat taxes are for people who can't do math.

[Warpy]

16. Not deducting it causes more debt

because so many people are charging necessities from groceries and gas to health care on them. The more money you suck out of their pockets at tax time, the more they're going to put onto those cards.

[Bobbieo]

8. I don't worry about interest build up on my card. I use it very frugally

and pay it off for every month I do use it.

[Warpy]

15. So did everybody when they started out

They also started out paying it off every month.

It's a scam you can get sucked into very easily. Most people are better off without cards. The ones who need them for travel and work need to realize what the scam is and act accordingly.

[WoodrowFan]

9. only if it is a business credit card

only if it is a business credit card


http://www.betterbudgeting.com/articles/homebusiness/businesscreditcard.htm