You may have run up hundreds or thousands of dollars in credit card interest charges in 2019, but don’t expect any relief from Uncle Sam as the new tax season rolls around.
Generally, the interest charges that rack up if you don’t pay your credit card bill off each month are considered “personal interest,” which hasn’t been deductible from income tax returns for more than three decades.
Before that time, any credit card interest you paid could be a tax write-off. But that deduction was eliminated when Congress passed the Tax Reform Act of 1986.
“There are not a lot of deductions for things considered personal items,” says Russell Schneidewind, lead tax research analyst for H&R Block’s Tax Institute.
However, it’s a different story in terms of credit card interest write-offs if you’re part of the gig economy or you’re self-employed.
And there are moves you can make this year to help reduce your credit card interest payments going forward…Read more>>