Personal interest. Personal interest is not deductible. Examples of personal interest include interest charged on credit cards, car loans, and installment plans. But beginning in 1998, you may be able to deduct interest you pay on a qualified student loan. For details, see Publication 970, Tax Benefits for Higher Education.

Limit on itemized deductions. Certain itemized deductions (including home mortgage interest) are limited if your adjusted gross income is more than $124,500 ($62,250 if you are married filing a separate return). For more information, see chapter 22.

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