2008 Federal Tax Schedules

All numbers are adjusted for inflation.

 

Married individuals filing joint returns and surviving spouses

If taxable income is: Tax is:
$1 - $16,050 10% of taxable income
$16,051 - $65,100 15% of taxable income
$65,101 - $131,450 25% of taxable income
$131,451 - $200,300 28% of taxable income
$200,301 - $357,700 33% of taxable income
Over $357,700 35% of taxable income

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Heads of Households

If taxable income is: Tax is:
$1 - $11,450 10% of taxable income
$11,451 - $43,650 15% of taxable income
$43,651 - $112,650 25% of taxable income
$112,651 - $182,400 28% of taxable income
$182,401 - $357,700 33% of taxable income
Over $357,700 35% of taxable income

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Single individuals (other than surviving spouses and heads of households)

If taxable income is: Tax is:
$1 - $8,025 10% of taxable income
$8,026 - $32,550 15% of taxable income
$32,551 - $78,850 25% of taxable income
$78,851 - $164,550 28% of taxable income
$164,551 - $357,700 33% of taxable income
Over $357,700 35% of taxable income

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Married individuals filing separate returns

If taxable income is: Tax is:
$1 - $8,025 10% of taxable income
$8,026 - $32,550 15% of taxable income
$32,551 - $65,725 25% of taxable income
$65,726 - $100,150 28% of taxable income
$100,151 - $178,850 33% of taxable income
Over $178,850 35% of taxable income

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Standard Deduction

Single $5,450
Married filing Jointly/Surviving spouses $10,900
Married filing separately $5,450
Head of household $8,000
Additional for elderly or blind (married) $1,050
Additional for elderly or blind (head of household) $1,350
Additional for elderly or blind (single) $1,350
Taxpayer dependent of another greater of $900 or $300 plus earned income, not to exceed regular standard deduction

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Maximum/minimum rate for net long-term capital gains

Over 12 month holding period 15%
Exception for 10-15% tax bracket 0%

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Personal exemption

$3,500 (zero for individual who is dependent of another taxpayer)

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FICA & self-employment tax

Taxable wages for social security up to $102,000
Maximum social security $6,324
Social security tax rate for both employers and employees 6.20%
Social security tax rate for self-employed 12.4%
Taxable wages for Medicare All
Maximum Medicare tax No limit
Medicare tax rate for both employers and employees 1.45%
Medicare tax rate for self-employed 2.9%
Self-employed health insurance deduction 100%

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Social security earnings limit

Year before Social Security eligibility $13,560
Year after Social Security eligibility No limit

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Retirement plan limitations

IRA Contribution Limit $5,000
     50 & over catch-up $1,000
SIMPLE Deferral Limit $10,500
     50 & over catch-up $2,500
401(k) Deferral Limit $15,500
     50 & over catch-up $5,000

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Retirement plan Cost of Living Adjustments (COLAs)

Category For 2008
Compensation Cap for Plan Purposes $230,000
Compensation for Highly Compensated Definition $105,000
Compensation for HCE Definition and Top Paid 20% $105,000
Key Employee Compensation - Officer $150,000
Key Employee Compensation - 1% Owner $150,000
Deferral Limit for 401(k) & SAR-SEPs $15,500
Deferral Limit for 403(b) Plans $15,500
Deferral Limit for 457(b) Plans $15,500
Deferral Limit for SIMPLE IRA Plans $10,500
Maximum Match for SIMPLE IRA Plans $10,500
Minimum Earnings for SEP Contribution Plans $500
Social Security Wage Base OASDI $102,000
Medicare Wage Base Unlimited

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Section 179 Deduction

$250,000 for property placed in service in calendar year 2008.
(SUV Limit - $25,000)
Investment Limitation - $800,000 of qualified property placed in service during 2008.

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Kiddie tax unearned income maximum

$1,800

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Adoption Tax Credit

Expenses up to $11,650 (subject to modified AGI phase-out beginning at $174,730 
to completely phased out at $214,730) per child

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Education Loan Interest Deduction

$2,500

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Education Loan Interest Deduction (for AGI)

$2,500

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Estate Tax Exemption

Federal $2,000,000
State of Tennessee $1,000,000

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Top Estate Tax Rate

45%

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Annual Gift Exclusion

$12,000

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Standard mileage allowance

Business

50.5 cents/mile through 6/30.
58.5 cents/mile from 7/1-12/31

Charitable activities 14 cents/mile
Medical expense 19 cents/mile through 6/30.
27 cents/mile from 7/1-12/31
Moving expense 19 cents/mile through 6/30.
27 cents/mile from 7/1-12/31

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Phase-out income levels (based on adjusted or modified adjusted gross income)

Personal exemption
Single $159,950/$282,450
Joint returns & surviving spouses $239,950/$362,450
Married filing separately $119,975/$181,225
Head of household $199,950/$322,450
Itemized deductions
Single/Joint/Head of Household $159,950
Married filing separately $79,975
College Savings bond interest exclusion
Single/Head of Household $67,100/$82,100
Joint $100,650/$130,650
Married filing separately $130,650
IRA deductibility (with company pension)
Single/Head of Household $53,000 - 63,000
Joint, when taxpayer has company pension $85,000 - 105,000
Joint, when spouse has company pension $159,000 -169,000
Married filing separately $0-$10,000
Roth IRA eligibility
Single/Head of household $101,000 - 116,000
Joint $159,000 - 169,000
Married filing separately $0 - 10,000
Rollover of regular IRA to Roth IRA $100,000 (not allowed for married filing separately)
Child credit
• $1,000 per child for 2008 for one or more qualifying children
Single/Head of household starts at $75,000
Joint starts at $110,000
Married filing separately starts at $55,000
Education IRA
Single/Head of household
$95,000 - 110,000
Married filing separately $95,000 - 110,000
Joint $190,000 - 220,000
HOPE/Lifetime learning credits
Single/Head of household $48,000 - 58,000
Joint $96,000 - 116,000
Married filing separately $0
Education loan interest deduction
Single/Head of Household $55,000 - $70,000
Joint $115,000 - 145,000
Married filing separately $0


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