I am trying to make sure that this is a good tax move to pay my Jan. 1 mortgage payment today. I took out my 401k this year because I lost my job and thought that maybe this could soften the penalty blow a bit. Any advice?
2007-12-31 00:36:13 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
We always pay in December because you will have a higher deduction for mortgage interest in your 2007 federal income tax.
2007-12-31 00:45:10 · answer #1 · answered by Anonymous · 2⤊ 0⤋
I did it this year to get the extra mortgage deduction for 2007. But you are really robbing Peter to pay Paul. Unless you plan to pay every Jan payment in Dec eventually it will catch up with you in a year.
2007-12-31 17:03:03 · answer #2 · answered by mgabel 2 · 0⤊ 0⤋
I always do that....but...
It is a little late now. Just postmarking it by 12/31 is not good enough. The mortgage company must receive it by 12/31 for you to get credit for it in 2007.
2007-12-31 11:10:01 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
If you pay your Jan 1 mortgage payment today you will be able to claim the interest from that payment on 2007 taxes.
Anyway you can also pay your Winter tax bill (usually due in Feb) today too?
With interest & tax bills you claim them the year you pay them, so this will most definitely soften the blow you will get from taking money from your 401K
2007-12-31 08:46:19 · answer #4 · answered by Gem 7 · 1⤊ 0⤋