Summary of 2007 Tax Changes:

  • Tax relief is available to struggling homeowners whose mortgage debt is forgiven.
  • Retirement savings incentives expand.
  • A new deduction is available for some mortgage insurance premiums. And
  • New recordkeeping rules apply to cash donations to charity.

AMT Exemption Increased for One Year
For tax-year 2007, Congress raised the alternative minimum tax exemption to $66,250 for a married couple filing a joint return, up from $62,550 in 2006. The exemption rises to $33,125 for a married person filing separately, up from $31,275, and it rises to $44,350 for singles and heads of household, up from $42,500. Under current law, these exemption amounts will drop