Question: Is Credit Card Interest Tax Deductible?
I'd heard a rumor that you could deduct certain types of credit card interest on your income taxes, particularly interest paid on qualified education expenses and home improvements. To get the answer, I asked William Perez, About Guide to Taxes.
Answer: In general, credit card interest is not tax deductible. It can only be deducted as a business expenses for businesses, contractors, and other self-employed individuals.
Some other types of interest can be deducted. This includes:
- mortgage interest
- student loan interest
- margin interest on investments
