Making your January 2015 mortgage payment in December 2014 can help increase your mortgage interest deduction which in turn can lower your taxable income. When your taxable income is lower then your total tax is lowered and can increase your refund or lower your tax bill.
Other Ways to Reduce Your 2014 Tax Bill
- Prepay your 2015 Property and State Income Taxes before Dec 31 (unless you normally owe Alternative Minimum Tax)
- Make full contributions to your 401 (k) and IRAs.
- Give to charity
- Take a loss on stocks (you can deduct up to $3000 a year)
- Estimate your 2014 income to see if you are subject to deduction, credit, and exemption phase-outs
