What are the tax implications of paying interest?

Interest paid may or may not be tax-deductible depending on the type of interest paid. Use this calculator to help determine what, if any, interest you pay this year may be deductible and to what extent it may save you on taxes.
Federal Income Tax Information
Marginal tax bracket (%)help
Home Mortgage Interest
First mortgage interest ($) 
Second mortgage interest ($) 
Home equity loan interest ($) 
Investment Interest
Investment interest you PAID ($) 
Interest and dividends you RECEIVED ($) 
Short-term capital gains/losses (-) ($) 
Business Debt Interest
Business debt interest ($) 
Personal Debt Interest
Credit card interest ($) 
Auto loan interest ($) 
Other personal debt interest ($) 
The information provided here is to assist you in planning for your future. Any analysis is a result of the information you have provided. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.

Any rate of return entered into the interactive calculator to project future values should be a reasonable average return for the period. Rates of return will vary over time, and generally the higher the rate of return the higher the degree of risk.

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