The Taxman Approacheth

April 15. Man does that day suck or what? I know what I’ll be doing on April 15th — that would be filing an extension on my 2007 taxes.

But some of you rabid avid readers may not be the procrastinator that I am. I bet someone out there right now is working on their taxes, or stuffing crap into a shoe box to take to their CPA.

As is typical, there were lots of changes to the tax code in 2007. Even if you use a tax preparer, I wouldn’t assume they are on top of everything. It can’t hurt to be informed.

So don’t forget these little nuggets as you pour through forms, instructions, TurboTax, aspirin and tequila.

On the home front:

Mortgage insurance premiums (MIP) may be deductible.

Mortgage debt forgiven in a loan restructuring, short sale or foreclosure may be excluded from taxable income.

Other changes:

Standard mileage rate increased.

Alternative Minimum Tax (AMT) exemption increased.

Contribution limits for IRAs raised.

Personal exemptions and standard deductions raised.

And more.

Help comprehending tax changes:

The IRS has a page summarizing the changes here. And here is the IRS Tax FAQ. <— now that is some light reading!

TurboTax explains in less painful English, plus includes changes planed for future years.

MSN Money links.

Illyce Glink on the Mortgage Debt Forgiveness Act.

World Wide Web Tax has some extensive resources.

For my Arizona brethren, here is the main site of the AZ Department of Revenue. Yes, it looks like the site was built in 1987, but there is current info to be had there.

Non-Arizona residents can likely find info for their state by Googling “My State tax”, “My State dept of revenue”, or “My State tax help”. (Replacing “My State” with your actual state of course). 

Required disclaimer: I am neither an attorney, a CPA nor a tax professional. And you know what? Neither is the Internet. This is only a guide for informational purposes. Seek professional assistance.

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[tags]Income tax, IRS, MIP deduction, Mortgage Debt Relief Act, The IRS is a pain in my ass[/tags]

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