2007 Tax Breaks
Take advantage of these tax-savers while they last.
Sales
Taxes
Itemizers may deduct either sales taxes or state and local income taxes. If
you opt for sales taxes, squeeze certain big-ticket purchases into 2007.
Hybrids
Need a new car? Consider a hybrid vehicle that could qualify for a tax credit
of up to $3,400.
Home
Improvements
Make energy-saving home improvements that qualify for a lifetime tax credit
of up to $500.
Gifts
Use this year's annual gift tax exclusion by December 31. You can give up to
$12,000 tax-free to as many individuals as you like.
Educators
Keep receipts for classroom supplies you purchase. You may
deduct up to $250 for such purchases even if you don't itemize deductions.
Mortgage
Insurance
You may deduct mortgage insurance premiums in 2007 if you meet the income limits
and other restrictions.