Paying the December Mortgage Bill Before December 31

Now that we’re snowed in (thanks to a blizzard that no one seems to have nicknamed as of yet), I’ve been cleaning my little heart out. The bathroom is sparkling, the Christmas gifts have been sorted and the tissue paper, boxes and gift bags carefully tucked away for re-use next season, and the back room that was loaded with baby stuff generously given to us by family and friends has been organized into a tolerable mess.

One thing I did remember to do before the end of the year is to pay our December mortgage before the 31. Why does it matter, you ask? By paying it before the end of 2010, we’ll be able to deduct the mortgage interest on our taxes come February. Between the mortgage interest and property tax deductions, we know we’ll be getting a hefty refund, and this will boost it. Yes, it’s an interest-free loan to the government, but this will be the first full year we’ve been paying these things, and I want to see what the numbers are before we readjust our W-4 withholding, if we choose to do it at all.

Currently, we both claim “zero” on our employer W-4s. I did so because I’ve always had freelance gigs. I get a 1099 at the end of the year, and I’m responsible for paying the taxes — and the last thing I want is to pay taxes in April. But now that we own our own home, it’s a whole new ballgame.

Do you remember to pay your December mortgage bill before the 31st? Worst comes to worst, you’ll include that mortgage interest in the follow year’s tax deductions, right?

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