Ohio Society of CPAs explains 5 tax laws to save consumers time and money in filing returns

For More Information: Amy Johnson, Senior Manager, Public Relations E-mail: ajohnson@ohio-cpa.com 614.764.2727, ext. 341

(COLUMBUS, February 29, 2008) – With just over one month remaining until the April 15th tax filing deadline, The Ohio Society of CPAs offers consumers a number of resources to help with preparation of 2007 tax returns.

Understanding recent tax law changes can help homeowners save money as well as time in filing.

1. Mortgage Debt Forgiveness Act of 2007 – Under the new law, some homeowners granted forgiveness of mortgage debt will not have to pay taxes on this income if the forgiven debt is less than $2 million for a married person filing jointly. Also, the mortgage debt must be discharged by a lender in 2007, 2008 or 2009, and the loan must have been taken out to buy or build a primary residence. Use form 982 to qualify which is available on IRS.gov. You should receive a form 1099 C from the lender.
   
   
2. Deducting private mortgage insurance – In some cases, PMI can be deducted like home mortgage interest. The deduction only applies to PMI policies issued from 2007-2010 and the mortgage for which the insurance payments are made must be on a first or second home. The deduction also is phased out for taxpayers with adjusted gross incomes exceeding $100,000 and is reduced by 10% of every $1,000 over that amount. So, if your income is $110,000, you can’t claim it.
   
   
3. Alternative Minimum Tax – Congress has increased the amount of income that’s excluded from the AMT to $66,250 for married, joint return filers; $44,350 for single taxpayers; and $33,125 for married couples who file separately. Five AMT-related forms became available February 11. Make sure you use the latest version when filing.
   
   
4. More donation proof – Previously, donation proof was only needed if the gift was $250 or more. Now, a monetary gift of any amount requires a bank record or written communication from the charity. For smaller donations, the receipts don’t have to be sent with the 1040, but the IRS will disallow the write-off if appropriate documentation is not produced upon request. If the donation is over $250, a written acknowledgement is still needed from the charity –a check is not enough.
   
   
5. Tuition deduction – While deductions for tuition and fees are once again included on Forms 1040 and 1040A this year, these deductions now must be submitted along with Form 8917.

If you have questions about eligibility on any deductions or on tax laws for your particular situation, consult a CPA.

To find a CPA in your area call 888.959.1212.

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The Ohio Society of CPAs, established in 1908, represents more than 24,000 CPAs in business, education, government and public accounting. The Ohio Society’s members not only meet statutory and regulatory requirements as CPAs, but also embrace the highest standards of professional and ethical performance. This is achieved through ongoing professional education, comprehensive quality review and compliance with a strict Code of Professional Conduct.

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