New Tax Forms Give Homeowners Relief...

It's shaping up to be a less-painful year for many taxpayers who are preparing their 2007 returns.
For one thing, most filers will be getting a special payment from the government, thanks to the economic stimulus package enacted last week. Additionally, some taxpayers who may have been puzzled trying to claim certain deductions a year ago -- including one for state and local sales taxes -- shouldn't have any problem this year because those deductions are clearly marked on the 2007 forms. There's also a new deduction for mortgage insurance.

Another twist: a new law that will benefit strapped homeowners whose mortgage debt was forgiven, in part or in whole, during 2007. On the downside, there are tough new record-keeping rules for charitable donations. For an overview of the major changes and how they might affect your pocketbook..more....