"As you start to see how your tax picture fared in 2007, it is a great time to make 2008 an even smarter year when it comes to your personal finances," Housser said.

These seven steps can get individuals started:

1. Take a baseline measure. Review tax changes for 2008 and make plans accordingly. For instance, the deduction for mortgage-insurance premiums on mortgages taken out after 2006 that was due to expire at the end of 2007 was actually renewed by Congress at the end of December. Other tax credits and deductions also come and go. Understand the current situation before making plans.

2. Make good on past tax debt. "Some Americans avoid looking at their tax bills -- or in some cases, paying them -- for years on end," Housser said. "If you are liable for back taxes, the time to remedy the situation is NOW. The Internal Revenue Service is becoming more and more diligent about following up on back taxes." A tax advisor and/or or debt resolution expert (try www.freedomfinancialnetwork.com) can help. Those who are unable to pay may be eligible for various solutions, such as offers in compromise or other negotiations with the IRS.

3. Correct withholding. A big refund means taxpayers succeeded in not owing the IRS -- but it also means they're giving the IRS an interest-free loan by having too much withheld in taxes. Those who owe a bundle should rework withholding forms or make quarterly estimated tax payments -- now.

4. Plan for flex spending. Early in the year -- if not sooner -- employers ask employees to update their information for flexible spending accounts. "Review last year's health costs if you have a flexible spending account for health expenses, and anticipate anything that will change this year," suggested Housser. "If you budgeted for LASIK surgery last year, for instance, do not have the same amount withheld this year." Do the same for child care. If Junior is headed to first grade in the fall, child-care expenses will tumble. Do not lose cash by having too much withheld -- and do not miss out on benefits by withholding too little.

5. Plan to save for retirement. Each year, retirement plan funding limits rise. With inflation, the deductions apply to slightly higher income levels. "Know where you stand, and if at all possible, maximize your investments for your later years," Housser said.

6. Plan a giving strategy. It can feel like part of the holiday spirit to dash off checks to every organization that asks in December, hoping to add to deductions. But a mad dash at the most expensive time of the year isn't in anyone's best interest. Make charitable donations part of a monthly budget. Set an annual target, divide it by 12, and give each month. Don't neglect to get a receipt, required for taking a tax deduction for contributions to qualified organizations.

7. Personalize. If a certain tax issue tends to surprise you every year, make a note of it this year and resolve to correct the problem before next year.

"Nothing feels better than starting a fresh, new year with your financial life in place, and taxes are an important part of that scenario," Housser concluded. "By taking some time to plan for 2008 while the year is young, you'll give yourself a New Year's gift of peace of mind -- at least until the next tax season rolls around."

Based in San Mateo, Calif., Bills.com is a free one-stop online portal where consumers can educate themselves about complex personal finance issues and comparison shop for products and services including credit cards, debt relief assistance, insurance, mortgages and other loans. The company blogs about consumer finance issues at http://www.bills.com/blog Since 2002, Bills.com has served more than 30,000 customers nationwide while managing more than $500 million in consumer debt. Bills.com is a division of Freedom Financial Network, LLC, whose co-founders and CEOs, Andrew Housser and Brad Stroh, have been named Northern California finalists in Ernst & Young's Entrepreneur of the Year Awards.

Do-it-yourself tax filers can conveniently utilize the site to look for up to date tax information and news, download various state and federal tax forms as well as provide tax tips and articles on important taxing subjects. Here you will be delighted to fine tips available for taxpayers on how to reduce taxes and take advantage of the calculators to estimate taxes, home mortgage, and capital gains on their taxes.

Many more taxpayers are turning to electronic filing (e-file). According to the IRS, 80 million tax returns were received through e-file in 2007 alone. Reasons people are choosing 1040.com/taxline Online Tax Preparation are as follows - Trusted by professionals nationwide - Allows taxpayer to complete the filing process at their convenience and - e-file and receive return fast!

www.1040.com/taxline

Global Financial Outsource Svcs, Inc.

Minneapolis/St Paul, MN

###

Data from the Mortgage Bankers Association shows that a bailout is unnecessary. The vast majority of homeowners are making their mortgage payments on time, including subprime borrowers. And homeowners who feel they have been duped or defrauded into signing bad mortgages have the right to seek redress in the courts.

?Simply put, taxpayers shouldn?t be forced to bail out the lenders who helped homeowners dive into the deep end of the financial pool, nor should taxpayers be obligated to rescue investors who made poor financial decisions. We didn?t bailout people who bought tech stocks at the height of the dot com boom, why should this be any different?? said Jim Broussard, Executive Director of Citizens Against Higher Taxes.

Real estate markets are cyclical in nature, and while downturns are unpleasant, they are always followed by a recovery. These downturns happen to varying degrees which we saw in the early nineties and as recently as 2001-2. Using a taxpayer bailout to counteract this natural cycle will only prolong the downturn and exacerbate its impacts.

On Friday, The US Senate voted for an FHA modernization bill (www.subprimenewsroom.com) that would do just that, attempting to meddle in the market and mask its taxpayer bailout proposals. Like most bailout schemes, elements of this bill set a dangerous precedent at the cost of taxpayers ? most notably it increases loan limits and reduces down payment requirements.

One portion of the legislation raises the FHA loan limit by over $50,000 to $417,000. However, the median home price in the US is only $220,000 according to the National Association of Realtors. In Pittsburgh the median price is $127,700 and in Philadelphia it is $243,000. There is no evidence to show the increase is necessary.

?The proposal to increase loan limits is a solution in search of a problem. The Senate proposal to increase FHA loan caps won?t help average homeowners; it helps the mortgage companies and people who are over-extended on their McMansions evade fiscal reality,? said Broussard.

Taxpayer bailouts (www.stoptaxpayerbailout.com) encourage reckless financial behavior. If consumers can count on being bailed out by the government, it eliminates all the risks associated with loan delinquency ending the motivation of borrowers on the verge of delinquency to pay their mortgage. In some cases, when finances are precarious, it may persuade borrowers to default in order to reap the financial reward of the bailout.

This problem is illustrated by another element of the FHA bill that proposes to cut the down payment requirement in half from a mere 3% of the loan value to a meager 1.5%. Down payment requirements ensure that a borrower has an ad­equate personal ?stake? in his or her home. When that stake is re­duced the risks and consequences of not paying your mortgage are virtually eliminated.

?We should be requiring homeowners to have a greater stake in their home ownership, not less. The less the homeowner has at stake, the more taxpayers are at risk. That isn?t good policy any way you slice it,? said Broussard.

While well intended, the FHA falls short of good public policy and is dangerously close to a full blown taxpayer bailout (www.subprimenewsroom.com). Citizens Against Higher Taxes is urging Congress to abandon the bailout elements of the FHA modernization bill.

The Traders Accounting Seminar will review the following:

?    Explanation of what day trading is and the taxes people need to aware of

?    Categorization of Traders

?    Starting up a day trading business

?    Investors - Just who are they?

?    What is a Trader to do in certain circumstances involving taxes?

?    Explain Benefits and Disadvantages of Trading as a Formal Business

?    Review Mark to Market Accounting for all individuals

?    Review the Taxation of Traders in Securities

?    How Are Regulated Futures Contracts and other Section 1256 Contracts Taxed?

?    Self-Directed 401k plans

?    Day trading services (http://www.tradersaccounting.com/newyork) Traders Accounting offers

"Our New York accounting seminar will review day trading and tax tips that individuals need to understand in order to be prepared for tax time," said Ryan Gibson, vice president of Traders Accounting. "The Traders Accounting Seminars give day traders an advantage while planning for taxes and help them understand what they are able ."

Traders Accounting Seminars offer assistance with day trading services for individuals and business around the country. At the event, individuals are encouraged to interact and get the help needed for their day trading and tax needs. Traders Accounting experts travel across the country to present the latest tax tips. To see the upcoming schedule, please check Traders Accounting upcoming event page (http://www.tradersaccounting.com/day-traders-news.php).

About Traders Accounting:

Traders Accounting has offered several accounting seminars (http://www.tradersaccounting.com/newyork) nationwide teaching individuals and businesses tips and advice for their day trading and taxes. The highly attended events showcase the knowledge and experience Traders Accounting demonstrates while working with clients. This has helped them become an industry leader to recommend advice on tax planning for day traders. For more information please visit TradersAccounting.com.

"For most of these individuals, not only is there a significant change in their health or medical well-being, but there is also a substantially reduced income level," said Paul Gada, a tax attorney and financial services product manager for Allsup. "This combination makes understanding and minimizing their tax obligations a crucial part of their financial well-being.

"Tax issues are more important than ever this year since even individuals that only receive minimal SSDI benefits and who may not generally owe taxes will need to file a return if they want to receive the one-time tax rebate," he added.

Below, Allsup answers common questions individuals with disabilities have about their income tax obligations.

- Are Social Security disability benefits taxable?

Yes. Both monthly SSDI benefits and lump-sum retroactive payments of SSDI benefits are subject to federal income tax. The state tax treatment of SSDI benefits varies, but most states do not tax SSDI benefits.

The federal tax rules applying to monthly benefits are fairly straightforward, but those related to lump-sum payments of SSDI benefits are complex.

-General SSDI benefits. As with all Social Security benefits, up to 50 percent of SSDI benefits are potentially subject to tax each year. To determine this, an individual adds up half his SSDI benefits plus all his other income sources, including taxable pensions, wages, interest, dividends, etc., as well as tax-exempt interest income. Married individuals filing jointly will have to pay taxes on a portion of their SSDI proceeds if their total exceeds a base amount, which for 2007 is $32,000. Most other filers will have to pay taxes on proceeds that exceed a base amount of $25,000.

However, as much as 85 percent of SSDI benefits can be taxed if the total of one-half of a person's benefits and all her other income for 2007 exceeded $34,000 as a single filer or $44,000 for those who are married filing jointly.

"The average monthly SSDI benefit in 2007 was slightly over $1,000. As a result, if this was your major source of income, it's likely you will not have to pay any taxes or will have a very low tax bill, particularly if you take advantage of available credits and deductions," said Gada.

-Lump-sum SSDI benefits. Trying to calculate the taxes owed on a lump-sum retroactive payment, which includes SSDI benefits owed for earlier years, gets far more complex.

"There are more than 1.4 million disability claims pending with the Social Security Administration, with the average time to receive an award taking two to four years," said Gada. "So, for example, if it takes 42 months to receive your award, you could receive a lump-sum payment of more than $40,000. That's a lot of income at once and could wreak havoc on your tax obligation."

Fortunately, there is a special election that allows lump-sum payments to be spread over previous tax years that represent the retroactive pay period, using just the current year tax return - with no need to file any amended returns. Unfortunately, the calculations required to figure this out manually over a multi-year scenario are extremely difficult. As a result, Gada encourages individuals to invest in tax preparation software or use a tax professional to prepare their taxes.

Individuals who received disability payments through an employer's or insurance company's long-term disability policy and had to repay the employer or insurance company for the disability payments can take an itemized deduction for all or part of the repayments.

- What credits and deductions are available to lower my tax bill?

Individuals with disabilities may be able to lower the taxes they owe through disability-related tax credits and deductions, as well as due to having reduced income. Among the tax breaks to evaluate are:

-Credit for the disabled. This credit is available if an individual receives taxable disability income and has 2007 adjusted gross income under: $17,500 for single filers; $20,000 if filing jointly and only one spouse is eligible for the credit; and $25,000 if filing jointly and both spouses are eligible.

-Representation cost. Individuals can deduct the expenses for SSDI representation required to secure their benefits.

-Dependent care credit. An individual who pays someone to care for his dependent or spouse who is not physically or mentally able to take care of herself may be able to receive a credit of up to 35 percent of the care provided while he was working or looking for work. The amount of the credit decreases as earnings go up, but a minimum credit of 20 percent is available to those with adjusted gross earnings over $43,000.

-Earned income tax credit (EITC). This is a refundable credit, which means that if the credit amount is higher than an individual's tax bill, she can actually get the unused portion of the credit back as part of a tax refund. To be eligible, a taxpayer or spouse had to have been employed for at least part of 2007, earned below a threshold of $12,590 to $39,783, depending upon filing status and the number of children claimed, and had maximum investment income of $2,900. Individuals qualifying for the EITC can realize a credit ranging from a few dollars to more than $4,700, depending on income and family size.

"In 2007, more than 22.4 million taxpayers received over $43.7 billion in earned income credits by filing their 2006 federal income tax returns," said Gada. "Unfortunately, the IRS estimates that approximately one in four eligible taxpayers failed to claim the EITC, mainly because they are unaware it exists. So, it's important to look at all available options."

-Saver's credit. For those struggling with the financial hardships caused by a permanent disability, putting away money for retirement may seem impossible. But individuals who qualify and can do so will realize a nice tax break as the maximum Saver's Credit is half of the first $2,000 ($4,000 for couples) saved in a retirement account, so up to $1,000 for a single filer and up to $2,000 for a married couple filing jointly. For 2007, the maximum income thresholds are $26,000 for single filers and $52,000 for couples filing jointly.

-Medical deductions. Those taxpayers itemizing their tax returns can deduct medical costs from their income tax so long as the expenses equal more than 7.5 percent of their adjusted gross income. This may be attainable for someone with a permanent disability who has little reportable income - if they understand all the expenses that can be included.

Deductible expenses include medical and dental costs for the taxpayer, their spouse and dependents, travel expenses to and from treatments, premiums for long-term care insurance payments, laser vision surgery, prosthetics, eyeglasses and hearing aids, costs for certain special equipment for the visually and hearing impaired, the cost and maintenance of a wheelchair and the cost and care of a guide dog for a person with a physical disability. Additionally, improvements to a home, such as constructing entrance ramps, can be deducted if their main purpose relates to medical care or accommodating a home for an individual's medical condition.

Additionally, individuals who are blind may be entitled to a higher standard deduction on their tax return.

- If all I received was SSDI benefits, am I eligible for the federal tax rebate program?

Generally, yes. But in order to receive a rebate, individuals must file a tax return - even if they owe no taxes. The one-time tax rebate, a part of the economic stimulus law President Bush signed earlier this month, is designed to stimulate the economy by having individuals go out and spend their rebate. Starting in May, the program will pay rebates to individuals with at least $3,000 in qualifying income, which includes income from a job, self-employment, Social Security benefits such as SSDI and veterans-disability payments. The rebate is $300 for qualifying single individuals receiving just Social Security or veterans-disability benefits and $600 for married couples.

However, the rebate amount could be more for a couple where one individual is also working (up to a $1,200 rebate) or where a single person with a disability had earned other income (up to a $600 rebate). Also, anyone getting a rebate may be eligible to get an extra $300 for each of their children under 17.

"Just because you have to file a tax return to get the rebate, it does not mean you'll have to pay any taxes. It just provides the IRS with the information it needs to issue your rebate, like your name, Social Security number, mailing address and 2007 income," explained Gada, noting that Allsup is providing a link to IRS tax forms needed for the rebate on its Web site (http://www.allsup.com) for the convenience of individuals with disabilities.

About Allsup

Allsup is the nation's premier Social Security Disability Insurance representation company. Since 1984, Allsup has helped nearly 100,000 Americans with disabilities receive their entitled disability benefits. Today, the company has about 475 professionals focused on helping individuals and their family's nationwide gain the financial and health benefits they deserve. For more information, visit Allsup's Web site at www.allsup.com.

Contact:

Mary Jung        

(773) 429-0940                

Dan Allsup

(800) 854-1418 ext 5760

###

Those receiving Social Security know that, depending on their earnings, they are responsible for paying income taxes on a portion of their benefits. The IRS adds half of an individual's Social Security benefits plus all other income (such as pensions, CD/bond interest or capital gains) to calculate the income taxes owed. For 2007, the nontaxable threshold for total adjusted income was $25,000 for a single person and $32,000 for those who are married, filing jointly. Those who exceed this threshold will be required to pay income tax on 50-85% of the amount of their Social Security benefits that goes over the threshold.

For a single individual, 50% of Social Security benefits are taxed when adjusted income is between $25,000 and $34,000. Amounts above $34,000 are 85% taxable.

For joint filers, 50% of Social Security benefits are taxed when adjusted incomes are between $32,000 and $44,000. Amounts above $44,000 are 85% taxable.

"Income tax on Social Security benefits can reduce an already-small amount of monthly benefits," says Ken Nuss, CEO of AnnuityAdvantage.com, an annuity shopping and comparison service. "By moving liquid investment funds into a deferred annuity (http://www.annuityadvantage.com/in/deferred-annuity.htm), retirees may be able reduce or eliminate taxes on Social Security income. An added bonus is that deferred fixed annuities are a safe, stable way to reap tax-deferred growth on savings."

A deferred fixed annuity (http://www.annuityadvantage.com), which is a contract between an insurance company and an individual, offers a favorable interest rate for a set term. For example, a premium deposit of $100,000 moved into a 10-year annuity, with a guaranteed interest rate of 5.10%, will result in $164,447 at the end of the annuity's 10-year guarantee period. Deferred fixed annuities (http://www.annuityadvantage.com) are backed by the full faith and credit of the issuing insurance company.

Savings products such as bank CDs, savings accounts and money market accounts are safe and earn interest; however, a consumer has to pay taxes on his or her interest earnings yearly. Annuity interest earnings, however, are tax-deferred until withdrawn. By moving fully-liquid savings accounts, CDs or money market accounts into annuities (http://www.annuityadvantage.com), a person can take a portion of their portfolio that produces taxable interest earnings and turn it into tax-deferred savings. With that usually-taxable portion of money locked away in an annuity, an individual's adjusted income is lowered, which leads to the possible reduction or elimination of the taxation of Social Security benefits.

"These days, retirees and near-retirees should first be vigilantly looking for ways to maximize their income. They also have to be sure that there is little risk of losing their savings," explains Nuss. "Buying a fixed deferred annuity can help seniors achieve these two goals."

AnnuityAdvantage.com's new Social Security tax analysis software assesses Social Security income, other sources of income and liquid savings to determine whether or not purchasing an annuity will save an individual from paying undue taxes on his or her Social Security income.

Those interested in learning more about how deferred annuities may help reduce personal federal income taxes should call 1-800-239-0356 or visit http://www.annuityadvantage.com AnnuityAvantage.com also offers a free personalized Social Security tax analysis to aid consumers in determining the suitability of a deferred annuity for their individual financial situation.