Here are two words that can get people so riled up you would think you’d insulted their mama: tax time.

Yes folks, no use grousing about it. Before you realize it, the time to file your tax return will be upon us. As we approach the end of the year, I thought it a good time to review a few tax-related things.

Here’s one idea: If you are getting a refund, consider using it as an opportunity to save. Last year, taxpayers for the first time were allowed to split their refunds among as many as three accounts at three different financial institutions. Previously you could only designate one bank account for your direct-deposit refund.

You may not have heard about this option because it’s so new. But now that you know, use it. Direct some of that refund to an individual retirement account perhaps.

The option requires IRS Form 8888, “Direct Deposit of Refund to More Than One Account.” If you want the IRS to deposit your refund into just one account, use the direct deposit line on your tax form.

For charitable donations, you need to make sure you get the right documentation if you plan to claim them on your 2007 tax return.

Starting with the 2007 tax year, you need paperwork – a receipt, canceled check or bank record – to back up your cash contributions. You need a record of your contributions regardless of the amount. Previously, only contributions of $250 or more required receipts.

Take note that a bank or credit union statement needs to show the name of the charity and the date and amount donated. If you give via a credit card, the charge statement needs to show the name of the charity, the transaction posting date and the amount donated.

The 2007 tax year offers a new deduction, for mortgage insurance premiums. Don’t confuse this with homeowner’s insurance to protect against fire or theft. Instead, this is insurance that protects a lender against financial loss if a homeowner defaults on mortgage payments and the house has to be sold at foreclosure.

The mortgage-insurance deduction is available for private mortgage insurance and mortgage insurance issued by the Department of Veterans Affairs, the Federal Housing Administration and the Rural Housing Service. The deduction is only if you took out a new mortgage or refinanced in 2007.

The deduction is available if your adjusted gross income is $100,000 or less. You are entitled to a reduced deduction if your adjusted gross income is more than $100,000. It is phased out completely if your adjusted gross income is more than $109,000 ($54,500 if married filing separately). There is an effort in Congress to extend this deduction until 2014.

I know tax time can be frustrating but you can make the process a little easier by starting early.