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Last year brought challenges to everyone, but here are a few ways to benefit and embrace the optimism that 2010 brings.

Forgiveness of mortgage debt.

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, are qualified for the relief.

Declining income.

The upside of a reduction in income is that you may be eligible for tax credits or deductions. The Earned Income Tax Credits available to working families and individuals. Eligibility is determined by income and family size.

Filling for bankruptcy.

Debts discharged through bankruptcy are not considered taxable income. If filed under Chapters 7 or 11 of the Bankruptcy Code, a separate estate is created, consisting of property that belonged to you before filling date. This bankruptcy estate is a new entity, separate from you as an individual taxpayer.

Forced to move? Take a deduction.

If a job loss or other circumstances force you to move to a new community, you may be able to deduct the cost of moving from your taxes. You can generally consider moving expenses incurred within one year from the date you first reported to work at a new location. The new job must be at least 50 miles farther from your old home than your previous job location.

 Source: IRS

SETTING MEANS GETTING by Tom Hopkins

1. If it's not in writing, it's not a goal. An unwritten want is a wish, a dream, a never-happen. If it's in writing, it's a commitment.

2. If it's not specific, it's not a goal. Broad desires and lofty aims have no effect. It must be concrete.

3. Goals must be believable. If you don't believe you can achieve a goal, you won't pay the price for it.

4. An effective goal is an exciting challenge. It must demand your best and a bit more or it isn't going to change your ways and elevate your lifestyle.

5. Goals must be adjusted to new information. Adjust them down if they become unbelievable or up if they're too easy.

6. Dynamic goals guide our choices. If you want it badly enough, you'll turn off the TV and get to it. Goals will show you the right way to go on most decisions.

7. Don't set short-term goals for more than 90 days. If you set a short-term goal that takes more than 90 days, you may lose interest.

8. Maintain a balance between long-term and short-term goals. Long-term goals tend to be hidden in a fog of the future, so have some short-term goals – like clothes, cars, vacations - to keep your excitement up.

9. Include your loved ones in your goals. Involve them and they'll buck you up when you need encouragement.

10. Set goals in all areas of your life. Have other goals besides career objectives.

11. Your goals must harmonize. Whenever you detect a conflict, set priorities that will eliminate the conflict.

12. Review your goals regularly. Remember, long-term goals can only be achieved if they are the culmination of short-term goals.

13. Set vivid goals. Define not only what you want but by when you want it, and concentrate on it for a few moments every day.

14. Don't chisel your goals in granite. Sometimes you have to change goals to conform to your growing awareness of what's really important in your life.

15. Reach out into the future. The idea of goal setting is to plan your life rather than taking it as it comes. Begin by setting 20-year goals. Then 10-year, five-year, 30-month, 12-month, monthly, weekly, and finally goals for tomorrow and each day for the coming week.

16. Have a set of goals for every day, and review results each night.

17. Train yourself to crave your goals. Visualize yourself possessing what you've set your goals for.

18. Set activity goals, not production goals. Activity will lead to production by itself.

19. Understand luck, and make it work for you. Expect good things to happen, and they probably will.

20. Start now. Give goal-setting two hours of concentrated focus through today. Then set aside 10 minutes a day for the next 21 days to review and revise. After that, two minutes a day and one hour a week is all it will take to keep you on track.

Try this system if you want to achieve your goals and within 21 days you'll be well on your way to an immensely greater and richer future.

Using Tax Credit for Down Payment