Sacramento, CA (1888PressRelease)
March 03, 2008 - Sacramento, CA – Now that the mad rush to file taxes for the 2007 tax year is heating up, the nation’s leading expert on IRS tax debt elimination offers important tax information and tips to help taxpayers fully prepare for tax season.
Roni Deutch, aka the “Tax Lady” from her popular national TV commercials, has operated the largest Tax Resolution Law Firm in the United States for the past 16 years. Deutch believes in providing taxpayers ongoing up-to-date information, and because the United States tax code is constantly being changed and updated by Congress, it’s essential to stay informed on recent tax changes and how they might affect your next income tax return.
Deutch provides information on the following tax changes in effect for the 2007 tax year:
Foreclosure Relief - Over the past year the federal government finally did something to help the thousands of families getting hit with huge tax bills after loosing their house due to foreclosure. According to recent law changes, debt forgiven by a foreclosure, short sale, or loan restructure will no longer be treated as income. The IRS will now allow for up to $2 million of forgiven debt to be excluded from a person’s income. However, it is important to note that this law change only applies to homes used as a principal residence. Vacation homes and property investments are not protected.
AMT Exemptions - In 2007 congress increased the AMT exemptions to prevent millions of middle income taxpayers from being hit with the tax. The new exemptions are $44,350 for single taxpayers and heads of households, $33,125 for married filing separately, and $66,250 for married filing jointly. However, this exemption is only for the 2007 tax year and these numbers will drop in 2008 unless congress passes another AMT patch.
Higher Income IRA Limits - You can now take a full IRA deduction if your modified AGI (adjusted gross income) is less than $52,000, if you are single or the head of household, or $83,000 if you are married filing jointly.
Higher 401(k) Limits - In 2007 there was a $500 increase on the limit for employee 401(k) contributions. The limit is now $15,500 for workers under 50, and $20,500 for workers over fifty. The increase also applies to other similar workplace retirement plans including 403(b)s and the federal Thrift Savings Plan.
Income from Abroad - The maximum foreign income exclusion was raised from $82,400 in 2006 to $85,700 for the 2007 tax year.
