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Pay your January '09 Mortgage Early - Increase 2008 Tax Deductions!

Posted at Great Northeast Queens News by John Maniec

Dec. 10, 2008

Categorized in: Home Owner Money Saving Tips

Tagged with: early mortgage payment, homeowner tip, increase tax deductions, northeast queens, save money

Mail your January 2009 mortgage payment in December 2008 to get an extra tax deduction For most Americans, mortgage interest paid on a home loan is tax-deductible in the year in which it was paid.

With advance planning, therefore, homeowners can increase their 2008 tax deductions and limit their tax liability on April 15.

The key is to make the January 2009 mortgage payment before the New Year begins.

In making the payment in 2008, the payment's mortgage interest is applied against this year's tax deductions instead of next year's. And lest you think you're paying "in advance", remember that mortgage interest is paid in arrears; a payment due January 1 accounts for interest that accumulated in December 2008 anyway.

Tax planning is a complicated issue and not all homeowners will qualify for mortgage interest tax deductions. Check with your tax professional before making tax planning decisions.

If you don't have an accountant you trust, call or email me anytime; I'm happy to make a recommendation to you.

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1. RE: Pay your January '09 Mortgage Early - Increase 2008 Tax Deductions!

Written by: Don

Jan. 23, 2009

I have a question about this years taxes. Last year I paid my mortgage on 12/31/07 so that mortgage interest got credited to my last years taxes instead of my 08 return. My 1098 from my bank for 07 didnt show that extra interest intially, some time in Feburary after already submitting my 07 return I received a corrected 1098 from my bank with the extra interest paid. I never ended up claiming that extra interest on my 07 return. Is it possible to claim that extra interest on my 08 return or if not, can I still file an ammended 07 return so I can get the extra money back for the month of interest paid? Thanks for you help.

Don

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