Required Minimum Distributions- Generally, taxpayers 70^1/2years of age or older must take "required minimum distributions" from IRAs and qualified retirement plans such as 401(k)s each year. However, a new law passed late last year-the Worker, Retiree and Employer Recovery Act of 2008-suspends this requirement for 2009. More related information will be forthcoming.

Student Loans- In a new case, a lender discharged $3,000 of a consolidated student loan because the borrower had made timely payments for three consecutive years. But the waiver did not qualify as a tax-free gift, nor did the borrower qualify for any special tax law exception. Result: The Tax Court said the $3,000 forgiveness of debt constituted taxable income.