| 2008 Tax Rates | Standard Deductions/Personal Exemption | New for 2008 |
Various Adjustments of Tax Numbers for 2008
(Most references to AGI mean modified adjusted gross income for that deduction)
| Maximum Salary Deferrals: | $15,500 for 401(k), 403(b), 501(c), 457 plans; $10,500 for SIMPLE; see 'Retirement Plans' for contribution limits for age 50+: (additional $5,00/$2,500 catch-up) |
| Traditional IRA Contributions Limit: | $5,000 (up to amount of earned income for the year)
--additional catch-up $1,000 for age 50+ maximum $46,000 for a SEP-IRA |
Traditional IRA Contributions Deduction Phaseout: (when also eligible to contribute to a retirement plan at work) |
MFJ, QW: $85,000-$105,000 S, HH: $53,000-$63,000 MFS: 0-$10,000 And when taxpayer not plan eligible, but spouse covered by a plan: $159,000-$169,000 see 'Retirement Plans' regarding contribution limits |
Roth IRA Contributions Phaseout: |
MFJ: $159,000-$169,000 S, HH: $101,000-$116,000 MFS: 0-$10,000 |
| Social Security: |
Under age 65, can earn up to $13,560 without repaying benefits. Preceding months in year of reaching age 65: $36,120. After reaching age 65, no limit. Benefits reduced $1 for each $2 earned over limit under 65, (for each $3 in year of age 65). Earnings subject to SS tax: Employee: $102,000 (maximum $6,324) Household help: cash wages over $1,600 |
| Health Savings Account: | Maximum HSA deduction $2,900 individual coverage / $5,800 family coverage. |
| Educational Credit: | Hope Credit: 100% of first $1,200, 50% of next $1,200 tuition (first two years college) Lifetime Learning Credit: 20% of up to $10,000 tuition (any year college+) AGI phaseout: $48,000-$58,000 (S); $96,000-$116,000 (MFJ) |
| Student Loan Interest: | Up to $2,500 AGI phaseout: $115,000-$145,000 (MFJ), $55,000-$70,000 (individual) |
Earned Income Credit: |
Earned income/modified AGI under: One qualifying child: $33,995 ($36,995 MFJ) (maximum credit $4,824) Two qualifying children: $38,646 ($41,646 MFJ) (maximum credit $2,917) Qualifying without child: $12,880 ($15,880 MFJ) (maximum credit $439) (disqualified if investment income over $2,950, any filing status) |
| Adoption Credit | Up to $11,390 (phaseout $170,820-$210,820) |
| 'Kiddie Tax' | Children under 18/full-time student under 24 with interest/dividends over $1,800 |
| Standard Mileage Rates: |
Business: Jan-June: 50.5¢ / July-Dec: 58.5¢ (Depreciation conversion: 21¢) Charity: 14¢ Medical/Moving: Jan-June: 19¢ / July-Dec: 27¢ |
| Itemized Deduction phaseout: | starts at AGI of $159,950 ($79,975 MFS) |
| Personal Exemption phaseout: | Starts at AGI of: $119,975 MFS $159,950 S $199,950 HH $239,950 MFJ / QW |
| Section 179 Expense: | $250,000; placed-in-service phaseout $800,000 |
| Capital Gain Tax: | 15% for taxpayers in higher brackets, 0% for those in the 15%/10% brackets |
| Gift Tax Exclusion: | $12,000 |
| Foreign Income Exclusion: | $87,600 |
| See the original 'NEW TAX LAWS' menu for ongoing changes for this year | |
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| 2008 Tax Rates | Standard Deductions/Personal Exemption | New for 2008 |
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