For most Americans (but not all), mortgage interest is tax-deductible in the year in which it was paid.

With some advance planning, therefore, a homeowner can increase his 2007 tax deductions by paying additional mortgage interest while the calendar still reads 2007. 

The key is to make the mortgage payment due January 2008 a few days early.

Because mortgage interest is paid in arrears, a mortgage payment due January 1, 2008 accounts for interest that accumulated throughout December 2007. 

Rather than make January's mortgage payment on January 1, 2008, a homeowner can send payment this week or next -- while it's still 2007 -- and increase the amount of mortgage interest paid in 2007.  This can increase 2007's tax deductions.

Tax planning can be a complicated issue and not all homeowners qualify for mortgage interest tax deductions.  Be sure to consult your tax professional before making any tax planning decisions.  If you are without a tax professional, call or email me; I would be happy to make a trusted recommendation to you.

Ilyce N. Powell is a Certified Mortgage Planning Specialist (CMPS) with the Carteret Mortgage Corporation. A member of the National Association of Responsible Loan Officers (NARLO) and the Financial Planning Association (FPA), she is also affiliated with the National Association of Mortgage Brokers (NAMB) and the National Association of College Funding Advisors (NACFA). Her goal is to educate as many consumers as possible in the hopes of stamping out financial illiteracy across the nation.