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Janica's monthly mortgage payment was $900 last year, and on average, 13% of each payment was interest. if janica itemizes deductions on her federal income tax return, how much can she deduct for mortgage interest?

A)$1404
B)$1017
C)$75
D)$117

User Darrylkuhn
by
7.8k points

2 Answers

7 votes

Answer:

$1404

Explanation:

User Josuebrunel
by
8.6k points
4 votes

Answer:

The amount deduct for mortgage interest was $1,404

A is correct.

Explanation:

Janica's monthly mortgage payment was $900 last year.

Average interest of each payment was 13%

We need to find deduction for income tax on interest for mortgage.

As we know deduction calculate on year.

Monthly Payment = $900

Yearly Payment = 900 x 12 = $10,800

Average interest = 13%

Interest on payment = 13% of 10800


\Rightarrow 0.13* 10800


\Rightarrow 1404

Hence, The amount deduct for mortgage interest was $1,404

User Kartik Domadiya
by
8.3k points