Posted by JHyre in Ohio on February 16, 2002 at 06:03:34:
The interest is deducted from your income. You should calculate what portion of your payments is interest…that portion reducing your income. For example, if your income is $36,000 per year and the total interest paid is $30,000 per year (it WON’T be that round a number!), then your taxable income is $6,000, assuming that you have no other deductions (e.g.- interest).