* If you had a foreclosure, deed-in-lieu of sale, mortgage loan modification or a short-sale, you should be aware of the Mortgage Forgiveness Debt Relief Act of 2007. In tax law, the amount of forgiven debt is typically treated as income and is taxed. But to help people who are affected by the mortgage crisis, Congress excluded homeowners whose mortgage debt was forgiven in years 2007, 2008 and 2009. Keep good records, and keep track of the amount that the bank wrote off.
* If you sell stocks this year that result in a loss, familiarize yourself with the ''wash sale'' rules, which set time limits on when you can sell or repurchase stocks that you sell at a loss. For example, if you sell a stock at a loss and then want to buy it back when the price increases, you may have to wait 30 days to use the initial loss to offset other income.
* Gather records and receipts of work-related expenses that weren't reimbursed. Many companies are cutting back on expenses, and as a result, more employees are paying for their own professional training and conventions. If those costs exceed 2 percent of your income, you can deduct them. Suppose you earned $50,000. You could deduct work-related expenses above $1,000. If you attend a convention and spend $2,300 on airfare, hotel, registration and cab fees, you can deduct $1,300.
- Sources: Bankrate.com, Financial Resource Management, Fulbright & Fulbright
