Key Tax Numbers 2008


Federal Tax Brackets

 

Status Income Min Income Max  Base Amount  Plus of Income over
Single  $             -    $        8,025  $             -   10%  $                 -  
 $        8,025  $      32,550  $           803 15%  $            8,025
 $      32,550  $      78,850  $        4,481 25%  $           32,550
 $      78,850  $     164,550  $      16,056 28%  $           78,850
 $     164,550  $     357,700  $      40,052 33%  $         164,550
 $     357,700  NA   $     103,792 35%  $         357,700
Head of Household  $             -    $      11,450  $             -   10%  $                 -  
 $      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  NA   $     100,604 35%  $         357,700
Married Filing Jointly  $             -    $      16,050  $             -   10%  $                 -  
 $      16,050  $      65,100  $        1,605 15%  $           16,050
 $      65,100  $     131,450  $        8,963 25%  $           65,100
 $     131,450  $     200,300  $      25,550 28%  $         131,450
 $     200,300  $     357,700  $      44,828 33%  $         200,300
 $     357,700  NA   $      96,770 35%  $         357,700

 

Contribution Limits & Credits

 

Type Amount Catchup (over 50) Comment
401k, 403b, eligible 457 salary deferrals  $               15,500  $                5,000  
Total Defined Contrib Limit  $               46,000  $                5,000  
Defined Contrib Income Limit  $              230,000    
SIMPLE 401k, SIMPLE IRA salary deferrals  $               10,500  $                2,500  
Defined Benefit Limit  $              185,000    
IRA (Combination of Deductible, Roth, & Non-Deductible)  $                 5,000  $                1,000 Deductibiliy, and ability to contribute to a Roth IRA is phased out by AGI (see Phaseouts)
Educational Savings Account Limit (Coverdell)  $                 2,000   Ability to contribute is phased by AGI (see Phaseouts)
Child Tax Credit  $                 1,000   Per Child under age 17.  Phased out by AGI (see Phaseouts)
Child or Dependent Care Credit - one child  $                 3,000    
Child or Dependent Care Credit - more than one child  $                 6,000    
Lifetime Learning Credit Maximum  $                 2,000   Phased out by AGI (see Phaseouts)
Hope Credit Maximum  $                 1,800   Phased out by AGI (see Phaseouts)

 

Phase-Outs

 

Type Status Phaseout Begins Phaseout Ends Comment
Roth IRA Contribution Limits Single  $          101,000  $       116,000  
Married Filing Jointly  $          159,000  $       169,000
Traditional IRA - Qualified Plan Participant - Deductibility Limits Single  $            53,000  $         63,000  
Married Filing Jointly  $            85,000  $       105,000
Deductible IRA - Spouse Qualified Plan Participant Married Filing Jointly  $          159,000  $       169,000  
Eductional Savings Account (Coverdell) Contribution Limits Single  $            95,000  $       110,000  
Married Filing Jointly  $          190,000  $       220,000
Personal Exemption Single  $          159,950  $       282,250 Phaseout applies only to 1/3 of the exemption amount
Head of Household  $          199,950  $       322,450
Married Filing Jointly  $          239,950  $       362,450
AMT Exemption Single  $          112,500  $       297,300  
Married Filing Jointly  $          150,000  $       429,800
Itemized Deductions All  $          159,950  NA  Deductions are reduced by 3% of the amount that AGI is over the phaseout (capped at 80%).  Phaseout applies only to 1/3 of the deduction amount.
Child Tax Credit Single / HoH  $            75,000  $         95,000 Based on MAGI, not AGI
Married Filing Jointly  $          110,000  $       130,000
Student Loan Interest Deduction Single  $            55,000  $         70,000  
Married Filing Jointly  $          115,000  $       145,000
Lifetime Learning & Hope Credit Single  $            48,000  $         58,000  
Married Filing Jointly  $            96,000  $       116,000

 

Misc

 

Item Status Amount Comment
Personal & Dependent Exemption All  $            3,500 Phased out by AGI (see Phaseouts)
AMT Exemption Single $          46,200    Updated by the Tax Extender Act in 10/2008.
Head of Household $          46,200   
Married Filing Jointly  $          69,950   
Standard Deduction Single  $            5,450  
Head of Household  $            8,000
Married Filing Jointly  $          10,900
Add'l SD if Age >=65 or blind Single  $            1,050  
Married Filing Jointly  $            1,350
Social Security Wage Base All  $        102,000  
Kiddie Tax Income Limit All  $            1,800 An unmarried child under age 18 and full-time students under 24 are taxed at the parent’s rate on unearned income exceeding this amount
Student Loan Interest Deduction Maximum All  $            2,500 Phased out by AGI (see Phaseouts)
Annual Gift Tax Exclusion All  $          12,000  
Highly Compensated Employee All  $        105,000  
Key Employee All  $        150,000  
PBGC Max Monthly Pension All  $            4,313  
Section 179 Max Deduction All  $        250,000  
Mileage Rate Business  $   0.505 / 0.585 Second number indicates 7/1-12/31
Med & Move  $   0.190 / 0.270
Charity  $   0.140

 

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