New Tax Laws

There are some new tax laws you should know about. The biggest beneficiaries of the new tax laws are homeowners:

Home energy and tax savings: Now tax payers can claim more generous credits if you added solar water, heat or power systems to your house last year. And solar-related credits continue for 2008.

Tuition and Education: If you claim the tuition and fees deduction, you now must also file the new Form 8917 and submit it with your 1040 or 1040A.

The IRS got tougher on donation documentation in 2007. Previously, you had to get a receipt or other acknowledgement from a charity if you gave $250 or more. Now, for a monetary gift of any amount, must be able to produce “a bank record or a written communication” from the charity detailing the group’s name and the date and amount of the gift.