Table of Contents

• Publication 553 - Introductory Material
  • Introduction
• 1.   Tax Changes for Individuals
  • 2007 Changes
    • Economic Stimulus Payment
    • Alternative Minimum Tax (AMT)
    • Standard Mileage Rate
    • Earned Income Credit (EIC) Amounts Increased
    • Standard Deduction Amount Increased
    • Personal Exemptions
    • Exclusion From Income for Certain Cancellation of Debt on Principal Residence
    • Charitable Contributions
    • New Form 8917, Tuition and Fees Deduction
    • Income Limits Increased for Student Loan Interest Deduction
    • Income Limits Increased for Hope and Lifetime Learning Credits
    • Earned Income for Additional Child Tax Credit
    • Mortgage Insurance Premium Deduction
    • Limits Increased for Itemized Deductions
    • Health Savings Accounts (HSAs)
    • Child and Dependent Care Credit
    • Adoption Benefits Increased
    • Income Limits Increased for Reduction of Education Savings Bond Exclusion
    • Increase in Deductible Limit for Long-Term Care Premiums
    • Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion
    • Archer Medical Savings Accounts (MSAs) Limits Increased
    • Credit for Prior Year Minimum Tax
    • New Form 8919, Uncollected Social Security and Medicare Tax on Wages
    • Social Security and Medicare Taxes
    • Federal Telephone Excise Tax Credit
    • Changes to the Instructions for Form 1040 and Form 1040NR
    • Capital Asset Treatment for Self-Created Musical Works
    • Whistleblower Fees
    • Vacant Land Used as Part of Main Home Destroyed by a Hurricane
    • Special Rules for Owners of Cooperative Apartments
    • Sale of Main Home by Employees of the Intelligence Community
    • Conflict-of-Interest Sales
    • Penalty for Filing Erroneous Claim for Refund or Credit
    • Dishonored Check Penalty Increased
    • Penalty for Frivolous Tax Submissions Increased
    • Expired Tax Benefits
  • 2008 Changes
    • Recovery Rebate Credit
    • Alternative Minimum Tax (AMT)
    • Maximum Tax Rate on Qualified Dividends and Net Capital Gain Reduced
    • Investment Income of Children Under a Certain Age
    • Standard Mileage Rate
    • Earned Income Credit
    • Standard Deduction Amount Increased
    • Personal Exemption Amount Increased
    • Income Limits Increased for Student Loan Interest Deduction
    • Hope and Lifetime Learning Credits
    • Earned Income for Additional Child Tax Credit
    • Limits Increased for Itemized Deductions
    • Exclusion on Sale of Main Home by Surviving Spouse
    • Health Savings Accounts (HSAs)
    • Adoption Benefits Increased
    • Income Limits Increased for Reduction of Education Savings Bond Exclusion
    • Increase in Deductible Limit for Long-Term Care Premiums
    • Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion
    • Archer Medical Savings Accounts (MSAs) Limits Increased
    • Credit for Prior Year Minimum Tax
    • Exclusion of Income for Volunteer Firefighters and Emergency Medical Responders
    • Social Security and Medicare Taxes
    • Wage Threshold for Household Employees
    • Expired Tax Benefits
• 2.   Tax Changes for Businesses
  • 2007 Changes
    • Depreciation and Section 179 Deduction
    • Self-Employment Tax
    • Social Security and Medicare Taxes
    • Husband-Wife Business
    • Self-Employed Health Insurance Deduction
    • Domestic Production Activities Deduction Increased
    • Employer-Owned Life Insurance Contracts
    • Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips
    • Work Opportunity Credit
    • Alternative Fuel Vehicle Refueling Property Credit
    • Low Sulfur Diesel Fuel Production Credit
    • Fringe Benefit Parking Exclusion and Commuter Transportation Benefit
    • Health Savings Accounts
    • S Corporations
    • Penalty for Late Filing of a Partnership Return
    • Penalty for Late Filing of an S Corporation Return
    • Certain Transfers of Qualifying Geothermal or Mineral Interests
    • Certain Timber Losses
  • 2008 Changes
    • Depreciation and Section 179 Deduction
    • Meal Expenses When Subject to Hours of Service Limits
    • Self-Employment Tax
    • Social Security and Medicare Taxes
    • Federal Unemployment Tax Act (FUTA) Tax Rate
    • Maximum Automobile Value for Using the Cents-Per-Mile Valuation Rule
    • Fringe Benefit Parking Exclusion and Commuter Transportation Benefit
    • Health Savings Accounts
    • Nonqualified Deferred Compensation Plans
    • Penalty for Late Filing of a Partnership Return
    • Expired Tax Benefits
• 3.   IRAs and Other Retirement Plans
  • 2007 Changes
    • Catch-up Contributions in Certain Employer Bankruptcies
    • Income Exclusion for Retired Public Safety Officers
    • Modified AGI Limit for Traditional IRA Contributions Increased
    • Rollover by Nonspouse Beneficiary
    • Modified AGI Limit for Retirement Savings Credit Contributions Increased
    • Rollover of Nontaxable Amounts
    • Modified AGI Limit for Roth IRA Contributions Increased
    • Qualified Plans
    • Simplified Employee Pensions (SEPs)
    • SIMPLE Plans
    • 403(b) Plans
  • 2008 Changes
    • Traditional IRA Contribution and Deduction Limit
    • Modified AGI Limit for Traditional IRA Contributions Increased
    • Modified AGI Limit for Retirement Savings Contributions Credit Increased
    • Roth Contribution Limit
    • Modified AGI Limit for Roth IRA Contributions Increased
    • Qualified Plans
    • Simplified Employee Pensions (SEPs)
    • 403(b) Plans
    • Rollovers From Other Retirement Plans to Roth IRAs
    • Expired Tax Benefits
• 4.   Estate and Gift Taxes
  • 2007 Changes
    • Annual Exclusion for Gifts to Non-U.S. Citizen Spouses Increased
    • Maximum Estate and Gift Tax Rate Reduced
  • 2008 Changes
    • Annual Exclusion for Gifts to Non-U.S. Citizen Spouses Increased
• 5.   Excise Taxes
  • Changes Effective for the First Quarter of 2007
    • Air Transportation Taxes
    • Arrow Shafts
    • Diesel Fuel Used in Trains
    • Inland Waterways Fuel Use Tax
    • Taxable Vaccines
    • Qualified Blood Collector Organizations
  • Changes Effective for the Tax Period Beginning July 1, 2007
    • Heavy Highway Vehicle Use Tax
  • Changes Effective for the First Quarter of 2008
    • Air Transportation Taxes
    • Arrow Shafts
    • Dyed Diesel Fuel Used in Trains
    • Inland Waterways Fuel Use Tax
    • Disregarded Entities and Qualified Subchapter S Subsidiaries (QSubs)
• 6.   Foreign Issues
  • 2007 Changes
    • Foreign Earned Income and Housing Exclusions
    • Foreign Tax Credit
  • 2008 Changes
    • Foreign Earned Income and Housing Exclusions
    • Certain Distributions to Nonresident Aliens No Longer Exempt
• 7.   How To Get Tax Help
  • Taxpayer Advocacy Panel (TAP).
  • Low Income Taxpayer Clinics (LITCs).
• Index