The IRS has canceled the tax-exempt status of some of the nation's largest educational credit counseling services after determining that they prey on debt-ridden customers.

"These organizations have not been operating for the public good and don't deserve tax-exempt status," IRS Commissioner Mark Everson explained on Monday. "They have poisoned an entire sector of the charitable community."

A two-year investigation has resulted in the revocation, possible revocation or other termination of the tax-exempt status of 41 credit counseling agencies, said Everson.

According to Everson, many of the services offered little in the way of counseling or education. Counseling agencies must provide education and counseling to have tax-exempt status.

The 41 counseling organizations represent over 40% of the revenue in the $1 billion industry.

The remaining tax-exempt credit couseling services will be required to report on their activities. The other 740 known tax-exempt services will receive compliance inquiries.

"Depending on the responses received, additional audits may be undertaken," said the agency.

Everson explained that groups secure tax-exempt status and make cold phone calls to people in desperate financial situations. They use scare tactics to sell debt management plans that are not really geared towards reducing consumer debt. These plans are often very costly, charging consumers all types of administrative fees.

Everson recommends the 150 consumer credit counseling organizations that are approved by the Better Business Bureau. He warns that you could still find predatory agencies, no matter the endorsement.

Since 2003, the IRS has processed 100 applications by credit counseling firms for tax-exempt status. It has only approved three.

Homeowners get some nice perks when it comes to paying their income taxes.

With tax time less than one week away, don't forget to make your homeownership work for you. You can often make deductions for repairs, mortgage interest and home-offices.

The most talked about deduction that homeowners receive involves the interest you pay on your home mortgage. This deduction is used in many ways by brokers, lenders and real estate agents as a persuasion into owning a home. For the first years of your mortgage, the deduction will probably be quite a bit of money. But remember that as time goes by, your deduction will go down.

Most mortgages front-load the interest payments. You pay more interest and less principal at first. With time, the principal amount increases as the interest amount decreases. Think of it as a thirty-year teeter totter.

At some point in the life of your mortgage, you may realize that the interest isn't enough to help you out at tax time. You may even choose to go ahead and pay off the mortgage entirely. Most loans do not include prepayment penalties, but if yours does -- they too may be tax deductible.

Until you sell a home, you don't realize how important it is to keep all those receipts for repairs on the home. Keep every improvement or repair receipt. When you sell the home, you can use these expenses to offset the profits you make on the sale. If you have to pay taxes on the profits, the receipts will help you reduce those taxes.

For example, you may put a new roof on the home or simply remodel the bathroom. It doesn't matter the nature, the cost of the improvements can be added to the price you bought the home for. You should keep a file especially for those receipts so that you can find them without searching through years of receipts.

If you relocate because of your job, you could qualify for a mortgage deduction. It doesn't have to be a new job. It could be your first job, a new job or the same job. Your job office has to be at least 50 miles away from where you live.

You can deduct the moving van, any moving services, the cost of moving your vehicles, the use of storage and any hotel rooms you stayed in during the actual move.

If your home is damaged by a disaster or theft and you were not compensated by insurance, you may be able to receive a deduction on your taxes. The un-reimbursed damage must be more than 10% of your adjusted gross income after you have subtracted $100 from the un-reimbursed amount. But if you were a victim of Hurricane Katrina, there are separate rules that govern you. You will also be able to amend last year's return and claim this year's loss. Check with your CPA for any additional information on damage deductions.

Home-office deductions can be tricky. You can only use the office for one purpose -- your work. You can't let your husband play computer games at your desk or let your children use the space for homework. It must be treated like an office in a traditional business would be used.

This deduction is based on the square footage of your home as compared to the square footage of your home office. You can deduct the percentage from your household bills.

The key to getting all you can out of your tax deductions is knowing that they exist. Unfortunately, tax preparers don't always have the time to ask about every deduction that could apply to you. You must bring up everything you can to get what you deserve.

Many Americans working overseas may experience higher tax bills under the new law signed by President Bush. In some cases, overseas taxpayers could face tens of thousands of more dollars in taxes.

Those most affected will likely be those living in high cost areas, such as Hong Kong and Singapore. Those whose companies don't help cover the additional tax burdens of living abroad may suffer the highest increases. For companies with special relief packages for taxes, the additional costs could mean that fewer workers will be working abroad.

Under the old law, Americans working overseas could exclude up to $80,000 of foreign-earned income for 2006. Under the new law, the figure rises to $82,400. But the rate after that level is now higher than before. The new law also reduces the amount of housing costs that can be excluded or deducted.

The provision is expected to raise an estimated $2.1 billion in revenue over the next 10 years.

It is unclear how companies will react to the new law. The additional tax burden is expected to "significantly affect the cost" of overseas assignment, according to an Ernest & Young report.

In some areas of the world, American workers can expect to have as much as $20,000 in additional taxes for this year.

Many Americans working overseas may experience higher tax bills under the new law signed by President Bush. In some cases, overseas taxpayers could face tens of thousands of more dollars in taxes.

Those most affected will likely be those living in high cost areas, such as Hong Kong and Singapore. Those whose companies don't help cover the additional tax burdens of living abroad may suffer the highest increases. For companies with special relief packages for taxes, the additional costs could mean that fewer workers will be working abroad.

Under the old law, Americans working overseas could exclude up to $80,000 of foreign-earned income for 2006. Under the new law, the figure rises to $82,400. But the rate after that level is now higher than before. The new law also reduces the amount of housing costs that can be excluded or deducted.

The provision is expected to raise an estimated $2.1 billion in revenue over the next 10 years.

It is unclear how companies will react to the new law. The additional tax burden is expected to "significantly affect the cost" of overseas assignment, according to an Ernest & Young report.

In some areas of the world, American workers can expect to have as much as $20,000 in additional taxes for this year.

Many Americans working overseas may experience higher tax bills under the new law signed by President Bush. In some cases, overseas taxpayers could face tens of thousands of more dollars in taxes.

Those most affected will likely be those living in high cost areas, such as Hong Kong and Singapore. Those whose companies don't help cover the additional tax burdens of living abroad may suffer the highest increases. For companies with special relief packages for taxes, the additional costs could mean that fewer workers will be working abroad.

Under the old law, Americans working overseas could exclude up to $80,000 of foreign-earned income for 2006. Under the new law, the figure rises to $82,400. But the rate after that level is now higher than before. The new law also reduces the amount of housing costs that can be excluded or deducted.

The provision is expected to raise an estimated $2.1 billion in revenue over the next 10 years.

It is unclear how companies will react to the new law. The additional tax burden is expected to "significantly affect the cost" of overseas assignment, according to an Ernest & Young report.

In some areas of the world, American workers can expect to have as much as $20,000 in additional taxes for this year.

Mortgage Interest can be qualified as a Tax Deduction for the qualified home and mortgage. In fact, Mortgage Interest Tax Deduction remains a huge tax breaks for homeowners. Here are the common questions and answers. Internal Revenue Services (IRS) updates the tax laws and regulations every year. Be sure to keep with the current tax laws.

How to claim mortgage interest tax deduction?

The Lender sends the Form 1098 every year. In the form 1098, you can see how much mortgage interest paid. From the form 1098, you transfer the amount to Schedule A Form 1040 of income tax form.

What is secured debt?

A home acquisition that uses mortgage, deed of trust, or land contract is a secured debt. It provides a way for repayment in case of default, establishes the ownership of the home, and records the transaction under the local state of law.

How to distinguish a qualified home?

Any property that has sleeping, cooking, and toilet facility includes house, condominium, cooperative, mobile home, house trailer, or boat. Plus, the home must be first and second home of the homeowner.

Can I deduct mortgage interest for rented out second home?

Yes, you may deduct as long as you use the home more than 14 days or 10% of the calendar year.

Am I allowed to several second home?

If you have more than one second home, you can only use one second home for tax deduction. IRS does not limit which second home to choose. In case of new home purchases, main home disqualifies, and second home sells, you may choose another home as your second home.

What if I rented out part of the home?

You may treat the home as residential if you meet the following. First, the tenant use the rented part as primarily for residential. Next, the rented part does not have separate cooking, sleeping, and toilet facilities.

Does a home under construction consider as a qualified home?

You may consider a home under construction as a qualified home if the home is ready for occupancy in 24 months. The 24 months can start on or after the construction begins.

How about deducting a destroyed home?

In case the home was destroyed by fire, storm, tornado, earthquake, or other casualty, you can continue to deduct mortgage interest. However, you must rebuild the home, or sell the land.