Introduction This chapter discusses interest. Interest is the amount you pay for the use of borrowed money. The types of interest you can deduct as itemized deductions on Schedule A (Form 1040) are: Home mortgage interest, including certain points, and Investment interest. This chapter explains these deductions. It also explains where to deduct other types of interest and lists some types of interest you cannot deduct. Use Table 25-1 to find out where to get more information on various types of interest, including investment interest.