For the 2007 tax filing, homeowners may be eligible for a few new breaks. Among them is a deduction for private mortgage insurance premiums, appearing on Schedule A, line 13. The insurance must be “in connection with home-acquisition debt,” per IRS regulations. Premiums paid on a contract issued before the beginning of 2007 don’t count.

Another change could help homeowners with mortgage debt that was forgiven, either partly or entirely, by lenders. This deduction was recently enacted and is easily overlooked. The provision which was enacted Dec. 20 and is now known as the Mortgage Forgiveness Debt Relief Act of 2007. Simply put, taxpayers may exclude from gross income debt that was forgiven on their principal residence for “qualified” mortgage debt up to $2 million (or $1 million for a married person filing a separate return).

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