The term 'in arrears' refers to the status of payments that are overdue. In financial terms, it commonly indicates that the last payment was made at the end of a period rather than in advance. It can also mean that payments are in default, indicating non-compliance with the agreed payment schedule.
A qualified residence refers to a principal residence and one other residence that a taxpayer or spouse owns. Interest paid on a qualified residence may be deductible as an itemized deduction.
A tax shield refers to allowable deductions that reduce a taxpayer's taxable income, thereby decreasing the amount of tax owed.
