While the legislation solved one problem, it created a couple of others. First, it is only for tax year 2007. Congress is expected to pass additional measures to take care of 2008 taxes, but until it does, planning by taxpayers is hampered.

Secondly, because the AMT patch became law in late December, tax-filing is delayed for some taxpayers. Five AMT-related forms (Form 8863, Education Credits; Form 5695, Residential Energy Credits; Schedule 2, Child and Dependent Care Expenses for Form 1040A filers; Form 8396, Mortgage Interest Credit; and Form 8859, District of Columbia First-Time Homebuyer Credit) won't be ready for filers until Feb. 11. If you need to file any of those forms, the IRS will not accept your return -- or issue any refund -- until that February date.

4. More donation proof demanded
The IRS got tougher on donation documentation in 2007. Previously, you had to get a receipt or other acknowledgement from a charity if you gave $250 or more. Now, for a monetary gift of any amount, must be able to produce "a bank record or a written communication" from the charity detailing the group's name and the date and amount of the gift.

A canceled check is fine. If you charge a contribution, your credit card statement should be sufficient. Many charities also already provide a receipt for all monetary gifts, regardless of the amount.

You don't have to send the receipts for your smaller financial gifts with your 1040, but you will need them if the IRS questions your deductions. Without them, the agency will automatically disallow the write-off.

And don't forget about the good-or-better requirement that took effect in August 2006 for noncash gifts. Under this law, if the IRS determines you donated clothing or household items that didn't meet the standard, it can disallow your deduction. So don't even think about dumping worthless items in a charity's donation bin and then deducting the so-called gift.

5. Older philanthropist options
One tax-law change, however, made last year's charitable giving by older philanthropists easier. Individuals 70½ or older were able to transfer money directly from an IRA to a charitable organization. The option is available to either Roth or traditional IRA owners, but it is most beneficial when the money comes from a traditional account, because much of that cash is eventually taxed.

This was the case for taxpayers who had to take required minimum distributions from a traditional IRA. By sending the withdrawal directly to a charity, the donated amount wasn't included in the giver's taxable income, thereby lowering the filer's tax bill a bit.

If you took advantage of this option, remember that you can't double dip by claiming a deduction for the contribution. For this reason, the rollover method appeals to taxpayers who otherwise wouldn't get a tax deduction, such as those who take the standard deduction instead of itemizing.

The direct to charity rollover expired at the end of 2007. However, it should be renewed for the 2008 tax year. The House approved a one-year extension as part of its alternative minimum tax measure, but the charitable provisions were dropped by the Senate and never made it into the final AMT patch.

Look for lawmakers to act early in 2008 to reauthorize this donation option so that older IRA account holders can plan accordingly.