Go directly to:

Who Must File

Exemptions & Standard Deduction

Tax Rate Schedules

Phaseouts

Mileage Rates

Maximum Contribution Limits to IRA, SEP and 401K

Social Security

State Forms

---

Who Must File

Single	Under 65 65 or older	$8,950 $10,300
Joint	Both under 65 One 65 or older Both 65 or older	$17,900 $18,950 $20,000
Head of Household	Under 65 65 or older	$11,500 $12,850
Married filing Separate	Any age	$3,500
Qualifying Widow(er) with dependent Child	Under 65 65 or Older	$14,400 $15,450

New for 2008

Congress rarely make it simple. So no "fixes" for AMT (Alternative Minimun Tax), tax rate parity for joint returns (the mange penalty still applies for medium earners), extenders were passed so AMT, etc did not expire after 2007.

TOP

---

2008 Exemptions & Standard Deduction

Exemptions	$3,500
But remember the Phaseout rules

Standard deduction

Single	5,450
Blind (+1,350)	$6,800
Over 65 (+1,350)	$6,800
Blind and over 65	$8,150
Head of Household	$8,000
Blind (+1,350)	$9,350
Over 65 (+1,350)	$9,350
Blind and over 65	$10,700
Joint	$10,900
Blind (+1,050)	$11,950
Over 65 (+1,050)	$11,950
Blind and over 65	$13,000
Separate	$5,450
Blind (+1,050)	$6,500
Over 65 (+1,050)	$6,500
Blind and over 65	$7,550
Qualifying Widow(er) with dependent child	$10,900
Blind (+1,050)	$11,950
Over 65 (+1,050)	$11,950
Blind and over 65	$13,000
Dependent (no earned income)	$900
Blind (+1,350)	$2,250
Over 65 (+1,350)	$2,250
Blind and over 65	$3,600

Dependent with Earned Income (Wages)	Amount of earned income plus $300 up to standard deduction for filing status
Blind (+1,350)	$1,350 Plus: amount of earned income plus $300-- up to standard deduction for filing status
Over 65 (+1,350)	$1,350 Plus: amount of earned income plus $300-- up to standard deduction for filing status
Blind and over 65	$2,700 Plus: amount of earned income plus $300-- up to standard deduction for filing status

California Standard deduction

Single/ Married/ Separate	$3,692
Joint/ Head of Household/ Qualifying Widow(er)	$7,384

TOP

---

2008 Tax Rate Schedules

SINGLE

Taxable income is over		But not over		The tax is		Plus		Of the amount over
0		8,025		0		10%		0
8,025		32,550		802.50		15%		8,025
32,550		78,850		4,481.25		25%		32,550
78,850		164,550		16,056.25		28%		78,850
164,550		357,700		40,052.25		33%		164,550
357,700		------------		103,791.75		35%		357,700

MARRIED FILING JOINTLY or QUALIFYING WIDOW(ER)

Taxable income is over		But not over		The tax is		Plus		Of the amount over
0		16,050		0		10%		0
16,050		65,100		1,605		15%		16,050
65,100		131,450		8,962.50		25%		65,100
131,450		200,300		25,550		28%		131,450
200,300		357,700		44,828		33%		200,300
357,700		------------		96,770		35%		357,700

HEAD OF HOUSEHOLD

Taxable income is over		But not over		The tax is		Plus		Of the amount over
0		11,450		0		10%		0
11,450		43,650		1,145		15%		11,450
43,650		112,650		5,975		25%		43,650
112,650		182,400		23,225		28%		112,650
182,400		357,700		42,755		33%		182,400
357,700		------------		100,604		35%		357,700

MARRIED FILING SEPARATELY

Taxable income is over		But not over		The tax is		Plus		Of the amount over
0		8,025		0		10%		0
8,025		32,550		802.50		15%		8,025
32,550		65,725		4,481.25		25%		32,550
65,725		100,150		12,775		28%		65,725
100,150		178,850		22,414		33%		100,150
178,850		------------		48,385		35%		178,850

ESTATES AND TRUSTS (Form 1041)

Taxable income is over		But not over		The tax is		Plus		Of the amount over
0		2,200		0		15%		0
2,200		5,150		330		25%		2,200
5,150		7,850		1,067.50		28%		5,150
7,850		10,700		1,823.50		33%		7,850
10,700		------------		2,764		35%		10,700

CORPORATIONS (Form 1120)

Taxable income is over		But not over		The tax is		Plus		Of the amount over
0		50,000		0		15%		0
50,000		75,000		7500		25%		50,000
75,000		100,000		13,750		34%		75,000
100,000		335,000		22,250		39%		100,000
335,000		10,000,000		113,900		34%		335,000
10,000,000		15,000,000		3,400,000		35%		10,000,000
15,000,000		18,333,333		5,150,000		38%		15,000,000
18,333,333		------------		------------		35%		0

TOP

---

2008 Phaseouts

Many of the Tax Benefits you receive are limited or even completely phased out depending on the amount of your Adjusted Gross Income (AGI). This is a partial list for 2008.

This is one of the examples of Congress's extremely short sighted but very heavy handed way of sticking it to a very large segment of middle class taxpayers. It is an indication of the philosophy of Congress, which in its basest terms, is divide & conquer.

Here are some examples:
S = Single
HH = Head of Household
J = Joint
QW = Qualifying Widow(er) with dependent child

ITEM	STATUS	BEGINS	ENDS
Exemptions	Single	159,950	282,450
	HH	199,950	322,450
	Joint/QW	239,950	362,450
	Separate	119,975	161,225
Itemized Deductions	S/HH/J	159,950	(Complicated; See worksheet in Schedule A Instructions.)
	Separate	79,975	(See worksheet in instructions.)
Student Loan Interest	S/HH	55,000	70,000
(Max 2,500)	Joint	115,000	145,000
Tuition (Credit) 4,000	S/HH Joint	Under Under	65,000 130,000
Tuition (Credit) 2,000	S/HH Joint	65,000  130,000	80,000  160,000
Tuition (Credit) None	S/HH Joint	Over Over	80,000  130,000
Hope Ed Credit    (Max $1,800 per CHILD for 1st. two years on college)	S/HH	48,000	58,000
	Joint	96,000	116,000
Lifetime Ed Credit    (Max $2,000 per RETURN)	S/ HH	48,000	58,000
	Joint	96,000	116,000
Adoption Credit    (Max $11,650)	S/HH/J	174,730	214,730
Passive Rental Losses    (Max $25,000)	S/HH/J	100,000	150,000
ROTH IRA Eligibility    (No Tax benefit)	S/HH	101,000	116,000
	Joint	159,000	169,000

TOP

---

2008 Mileage Rates

For deducting or reimbursing 2008 business mileage on a personally owned vehicle.

Charity and Medical standard rates are for purposes of deductions on Schedule A (Itemized Deductions).

Note: Both Business and medical moving rates were adjusted upward as of July 1, 2008. The deductable total is the sum of the 2 rates.

Business rate	Jan 1 - June 30, 2008	50.5 cents per mile
	July 1 - Dec 31, 2008	58.5 cents per mile
Charity rate		14 cents per mile
Medical & Moving rate	Jan 1 - June 30, 2008	19 cents per mile
	July 1 - Dec 31, 2008	27 cents per mile

TOP

---

2008 Maximum Contribution

IRA
All IRA's (Deductible, non deductible, Roth)	$5,000
Over 50	$6,000

IRA SIMPLE
Employee - Any % of Wages to a Maximum contrubution of Over 50 (plus 2,500)	$10,500
Employer - Matching Contributions up to 3% of Wages	$13,000

401(K) & 401(b)
Employee	$15,500
Over 50 (plus 5,000)	$20,500
Employer - Up to 20% of Wage to a Maximum wage of	$220,000
Maximum Dollar Amt (Employer + Employee)	$44,000

KEOGH/SEP (Self Employed)
Depending on type of plan: Up to Either 12.+% of net Profit or 20% of Net Profit ( Talk to Plan Distributor) - Maximum contribution is	$46,000

TOP

---

Social Security

Limits on Earnings if under 65

Earnings required for Coverage

Social Security Historical Rates

Social Security is a sound system[?] Here is how Social Security rates have risen from its inception in 1937 to the present. An eye opener.

TOP

---

State Forms

Note there are 9 states that do not have a State Income Tax.

TOP

---