Key
USA Federal Income Tax Return Exemptions and Deductions for
2008 Tax Year
Use
the figures below for your USA 2008 federal income tax return
exemptions and deductions.
To stay current with legislation that may affect these rates and amounts,
visit the CCH website at www.CCHGroup.com/mtg.
STANDARD DEDUCTIONS
Married, Filing Joint Return $ 10,900
Surviving Spouse $ 10,900
Head
of Household $ 8,000
Unmarried (not S.S. or H.H.) $ 5,450
Married, Filing Separate Return $ 5,450
Dependent Standard Deduction (Minimum) $ 900
Additional Amount for Blindness or Age $ 1,050
Additional Amount as Above if Unmarried and not S.S. $ 1,350
EXEMPTIONS
Personal and Dependent Amount $ 3,500
Estate
Amount $ 600
Simple
Trust Amount $ 300
Complex Trust Amount $ 100
Qualifi ed Disability Trust Amount $ 3,500
Joint
Returns or Surviving Spouse (Phaseout starts) $ 239,950
Head
of Household (Phaseout starts) $ 199,950
Unmarried (not S.S. or H.H.) (Phaseout starts) $ 159,950
Married, Filing Separate Return (Phaseout starts) $ 119,975
ITEMIZED DEDUCTIONS
Married, Filing Separate Return (Phaseout starts) $ 79,975
Others
(Phaseout starts) $ 159,950
Casualty Loss (AGI Threshold) 10%
Medical Deduction (AGI Threshold) 7.5%
Miscellaneous Itemized (AGI Deduction Floor) 2%
RETIREMENT/PENSION PLANS
Maximum Annual Benefi t for Defi ned Benefi t Plan $ 185,000
Maximum Annual Contribution for Defi ned Contribution Plan $ 46,000
Highly
Compensated Employee Defi nition (In general) $ 105,000
SEP De
minimis Compensation Amount $ 500
SEP
Nondiscrimination Compensation Amount $ 230,000
401(k)
Maximum Compensation Amount $ 230,000
401(k)
Maximum Exclusion (In general) $ 15,500
IRA
Deduction Limit (In general) $ 5,000
SIMPLE
Contribution Limit $ 10,500
Catch-up Contributions (Extra amount for taxpayers over age 49):
Traditional and Roth IRAs $ 1,000
SIMPLEs $ 2,500
401(k), 403(b) and 457 Plans $ 5,000
Retirement Contributions Savings Tax Credit (Maximum) $ 1,000
Employer's Start-up Tax Credit (For establishing retirement plan) $ 500
ADJUSTED NET CAPITAL GAIN (ASSETS HELD MORE THAN 12 MONTHS)
General Rate: 15%
Low
Rate: (Taxpayers in 10% or 15% bracket) 0%
High
Rate: Collectibles (coins, art, antiques) 28%
Unrecaptured gain on real estate (Sec. 1250 gain) 25%
Dividends, qualifi ed (General rate) 15%
Dividends, qualifi ed (Taxpayers in 10% or 15% bracket) 0%
ESTATE
AND GIFT TAXES
Estate
Tax Credit Shelter Amount $ 2,000,000
Gift
Tax Credit Shelter Amount $ 1,000,000
Annual
Gift Tax Exclusion Amount (Per donee) $ 12,000
Estate/Gift Tax Rate (Before phaseout) 45%
PAYROLL TAXES
Soc.
Sec. (Self-employed) Combined Rate (OASDI+Medicare) 15.3%
Soc.
Sec. (Employer or Employee) Rate (OASDI+Medicare) 7.65%
OASDI
Maximum Base $ 102,000
Medicare Rate 2.9%
FUTA
Rate 6.2%
FUTA
Wage Base $ 7,000
Nanny
Tax Threshold $ 1,600
EDUCATION PROVISIONS
Hope
Scholarship Credit $ 1,800
Lifetime Learning Credit $ 2,000
Coverdell Education Savings Account Contribution $ 2,000
Student Loan Interest Deduction $ 2,500
U.S.
Savings Bond Interest Exclusion (Phaseout starts)
Married, fi ling joint return $ 100,650
Single, S.S. or H.H. $ 67,100
Married, fi ling separate return No exclusion
TRANSPORTATION
Fringe
Benefit: Employer-provided passes and vehicles $ 115/mo.
Fringe
Benefit: Qualified parking limit $ 220/mo.
Business Mileage Rate 50.5¢
Charitable Mileage Rate 14¢
Medical and Moving Mileage Rate 19¢
Depreciation Component of Standard Mileage Rate 21¢
High
Cost Per Diem Travel Rate (after 9/30/07) $ 237
Low
Cost Per Diem Travel Rate (after 9/30/07) $ 152
LONG-TERM CARE INSURANCE
Premium Limits
Age 40
or less $ 310
More
than 40, but not more than 50 $ 580
More
than 50, but not more than 60 $ 1,150
More
than 60, but not more than 70 $ 3,080
More
than 70 $ 3,850
CODE
SEC. 179 EXPENSE ALLOWANCE
Maximum Deduction $ 250,000
Tax-Return-Exemptions-Allowances-2008
Individual-Retirement-Accounts
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