I hate overpaying. I have on occasion overpaid for a one of a kind item, an impulsive buy, or was just too lazy to do the research.

However, overpaying one’s fair share of taxes never made sense to me. We always read about the IRS chasing down abusive tax evaders. Apparently, according to the IRS, there are over a million Americans who don’t deduct enough.

Here are some items I picked off the IRS website under the category Tax Law Changes for Individuals (2007) that I thought might help you when you tackle your 1040 this year. By the way, there are 24 listed, so if this information sparks your interest, why don’t you visit http://www.irs.gov/formspubs/content/0,,id=178012,00.html

Mileage Deduction - The way gas prices have been rising, it makes sense to deduct for mileage. For 2007, the standard mileage rate for the cost of operating your car for business use is 48.5 cents per mile. Also, don’t forget to include mileage deductions to and from medical appointments or for moving purposes, which increased to 20 cents a mile. Car expenses and use of the standard mileage rate are explained in chapter 4 of Publication 463, Travel, Entertainment, Gift, and Car Expenses. See Transportation under What Medical Expenses Are Includable in Publication 502 or Travel by car under Deductible Moving Expenses in Publication 521, Moving Expenses. The standard mileage rate for the cost of operating your car for charitable purposes remains 14 cents per mile. And in 2008, the standard mileage deduction will be 50.5 cents per mile.

Tax Preparation Fees- The pain of filling out 1040’s every is mitigated by the fact that you are allowed to deduct the cost of hiring an accountant or tax preparer as well as the cost of purchasing tax preparation software. Check out IRS Publication 529 at www.irs.gov/publications/529/ar02.html#d0e268.

Job Search - If you were looking for a job, expenses involving local lodging, travel, transportation, phone calls, copying costs, etc. are deductible. http://www.irs.gov/publications/p529/ix01.html.

State and Local Sales Taxes - Did you know that you can deduct the sales taxes paid on large purchases such as cars or boats, if you itemize on a Schedule A form? However, you will not be allowed to deduct both state income and sales taxes in the same year. You must choose one or the other (of course, the one with the higher of the two amounts) A handy sales tax deduction calendar can be found on the IRS website at http://apps.irs.gov/app/stdc/.

Mortgage Insurance Premiums — This is new for 2007. Mortgage insurance premiums are now tax–deductible. According to the IRS, the premiums must be connected to home acquisition debt, however, and issued by a ”qualified” mortgage insurer such as the Veterans Administration, Federal Housing Administration, or any of a number of private mortgage insurers. (You can find this amount in Box 4 of Form 1098, sent to you by your mortgage lender.) For more on this and other mortgage-related deductions, check out IRS Publication 936 online at irs.gov/pub/irs-pdf/p936.pdf.

Medical and Dental Services — List what you spent on medical expenses in 2007 (doctor visits, tests, healthcare premiums, drugs, hospitalization costs not covered by insurance, prosthetics, eyeglasses, false teeth etc.) Check you list against the IRS list of what services are and are not deductible. You may deduct any amount that exceeds 7.5% of your adjusted gross income. http://www.irs.gov/irb/2007_IRB/ar12.html

Child and Dependent Care Credit – If you have paid work related expenses for care of one child/or dependent, you can take the $3,000 credit. For two or more take $6,000, when figuring the credit. According to the IRS, if you paid work-related expenses for the care of two or more qualifying persons, the $6,000 limit does not need to be divided equally among them. For example, if your work-related expenses for the care of one qualifying person are $3,200 and your work-related expenses for another qualifying person are $2,800, you can use the total, $6,000. For more on this credit and to see if you qualify, check out IRS Publication 503 http://www.irs.gov/publications/p503/ar02.html#d0e2169 .

Home-Office Deduction - As writers, most of us have home offices and of course, it seems intuitive to take this deduction. I recall reading somewhere though, that if you take this deduction and you do not make money from your writing, that when you sell the house, the home office deduction you took may be subtracted from the profits of the house sale. So, check with an accountant to see if that is still the case. http://www.irs.gov/pub/irs-pdf/p535

Other Expenses — Any fees or expenses paid to produce or collect income or manage and maintain income–generating property, such as rental apartments, is also tax deductible up to the 2% AGI limit. Common deductions in this category include safe deposit box rental fees, service charges on dividend reinvestment plans, and depreciation on home computers used for investing. http://www.irs.gov/formspubs/content/0,,id=178012,00.html

Taking the Standard Deduction - No kidding. A recent government study found that one million or more Americans overpay their taxes by taking the “standard” deduction instead of itemizing.

Oh, one more new IRS directive. This is meant for all those who embellish their tax deductions. Now there is a penalty for erroneous claim for refund or credit. If you file a claim for a refund or credit on your income tax form in an excessive amount, and you did not have a reasonable basis for explanation, you will be penalized. Exactly what that means is not specifically mentioned, but the penalty can apply to any claim filed after May 25, 2007.

For those who omitted a deduction: File Form 1040X to amend your return.

If you go to www.irs.gov to retrieve income tax forms, you will find they are writable pdfs. This is great because no one has to wonder whether you wrote a 6 or 0…or how exactly is your last name spelled. Also, e-filing makes your refund easier and faster. However, if you decide to print the forms from the IRS site, you will not be able to save the information. You will only be able to save a blank form. Also, if you print a hard copy, you will see the 1040 will print out on two pages. The second page will not have any identification on it. Be sure that all sheets have your name and SSN, even if you have to handwrite it on the top.

I’m not a financial person. I just gathered some interesting tax information for you to consider when you do your taxes. If you have current tax software, it will walk you through all the 1040 line items. For detailed information, you should go to your accountant or call the IRS Help Line.