Question

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

Answer 1

Answer:

The amount deduct for mortgage interest was $1,404

A is correct.

Step-by-step 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

$\Rightarrow 0.13\times 10800$

$\Rightarrow 1404$

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