Dongkuk uses his holiday bonus to pay his January 2018 mortgage payment in December 2017.The payment would normally be due January 31st.Dongkuk may deduct the interest paid as part of the early mortgage payment.

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The IRS does not allow taxpayers to deduct prepaid interest, including mortgage interest, for a future year. The interest must be both paid and due within the same tax year to be deductible.

Dongkuk Uses His Holiday Bonus to Pay His January 2018