| 1) IRA Deduction - AGI phase-out |
| · $83,000 – 103,000 for married filing jointly or widow(er)s |
| · $52,000 – 62,000 for single and head of household |
| 2) Roth IRA Contributions – AGI phase-out |
| $156,000 – 166,000 for married filing jointly and widow(er)s |
| $99,000 – 114,000 for single, head of household and married filing separately |
| 3) 401(k), 403(b) , 457 and SIMPLE Plans |
| Maximum contribution increased to $15,500 ($10,500 for SIMPLE plan) |
| May be directly rolled over (trustee-to-trustee transfer) to any qualified plan |
| Non-spouse beneficiaries may roll over tax free all or part of a distribution to an IRA |
| 4) Health Savings Accounts (HSAs) |
| Deduction is no longer limited to amount of annual health plan deductible |
| Taxpayer is eligible to entire year contribution limit even though qualified during the last month of the year |
| One rollover in a lifetime can be made to HAS from a traditional or Roth IRA |
| One-time rollover allowed from an employer health reimbursement arrangement, such as health flexible spending arrangement, to HSAs |
| 5) Attorney fees and court costs deductible |
| Those paid in connection with an IRS award related to the detection of tax law violations is deductible as adjustment to income |
| 6) Charitable Contribution Provisions |
| Contribution made after Aug 17, 2006 must be supported by a dated bank record or receipt |
| Contribution after Feb 13, 2007 not deductible if made to war veterans’ organization or nonprofit cemetery company |
| 7) Mortgage Insurance Premium Deduction |
| Premiums paid or accrued during 2007 and 2007 only, will be deductible |
| Deduction begins to phase out when AGI income exceeds $100,000. No deduction if AGI exceeds $109,000 |
| 8) Decrease in Alternative Minimum Tax Exemption Amount (bad news!) |
| Threshold $33,750 for single and head of household |
| For married filing jointly $45,000 |
| For married filing separately $22,600 |
| 9) Credit for Prior Year Minimum Tax (Good news!) |
| All credit or refund for long-term unused minimum tax credit less than $5,000 |
| Tax credit or refund $5,000 for unused minimum tax credit $5,000 - $25,000 |
| Tax credit or refund 20% for long-term unused minimum tax credit over $25,000 |
| 10) Retirement Saver’s Credit for married filing jointly |
| Tax credit $2,000 for every $4,000 IRA opened when AGI is up to $31,000 |
| Tax credit $800 for every $4,000 IRA opened when AGI is $31,000 – 34,000 |
| Tax credit $400 for every $4,000 IRA opened when AGI is $34,000 – 52,000 |
| 11) Penalty for Frivolous tax returns - Penalty increased to $5,000 |
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