2007 Standard Mileage Rates:

Business        $0.485 per mile

Charitable      $0.14 per mile

Medical         $0.20 per mile

IRA deduction expanded for certain people

You and your spouse, if filing jointly, may each be able to deduct up to $5,000 if age 50 or older at the end of 2007, modified AGI is less than $103,000 if married filing jointly or qualifying widow(er).

Residential energy credit-New

You may be able to take a residential energy credit for expenses paid in 2007 to have qualified energy saving items installed in your main home.

Alternative motor vehicles

You may be able to take a credit if you place an energy efficient motor vehicle or alternative fuel vehicle refueling property.

Clean renewable energy bond credit-New

You may be able to take a credit based on the face amount of any clean renewable energy bond you hold during 2007.  the amount of any credit before tax liability limits must be included as interest income.

Finally passed in late December of 2007, the AMT exemption amount will increase to $44,350 ($66,250 if married filing jointly or a qualifying widow(er);  $33,125 if married filing separately), unless congress finalizes legislation aimed at increasing these amounts.  The exemption is expected to increase to $63,250 for MFJ if the current legislation passes.

Educator expense deduction expires after 2007

The deduction from AGI for educator expenses will expire after 2007.  To deduct educator expenses, you must itemize your deductions.

Tuition and fees deduction expires after 2007

You cannot take a deduction for qualified tuition and fees paid in 2008.  But you still may be able to take a credit for these expenses.

Mortgage Insurance Premium deduction

You cant take a deduction for mortgage insurance premiums paid on qualified residences purchased during 2007.