1

I'm gathering information for my US income taxes. I received $100 in interest on my savings account. However, I also paid $100 in interest on my overdraft line of credit. Do they cancel out such that I report $0 interest income?

  • Do you (not your business - you) ever -- have you ever -- deducted interest expenses on your tax return? – RonJohn Jan 8 at 22:22
  • Sure, mortgage interest. – Jeremy Stein Jan 10 at 1:20
1

No - interest expense is reported separately form interest income. One reason is that interest expense is an itemized deduction, so you could have interest income that is taxable, but not deduct any interest expense if you don't itemize because the standard deduction is more than your total itemized deductions.

Also note some interest expenses such as interest paid on a credit card or line of credit (other then possibly a HELOC) are not deductible anyways. So your interest expense may not even be deductible.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.