2008 Tax Information

PERSONAL EXEMPTION	$3,500 per person (none if filing as a dependent)
EXEMPTION PHASEOUT	Starts at $239,950 (MFJ), $199,950 (H of H), $159,950 (single), $119,975 (MFS)
MAXIMUM SALARY DEFERRALS	$15,500 for 401(k), 501(c), 457 and 403(b) plans. ($20,500 if over 50) $10,500 the Simple, $13,000 if 50 or older.
MAX. RETIREMENT PLAN CONTRIBUTIONS	*IRA (Regular and Roth): $5,000; $6,000 if 50 or older Defined Contribution Plans: $46,000 Defined Benefit Plans:** $185,000 * Roth phaseout begins @ $99K AGI for Single; $156K for MFJ; $0 for MFS
STANDARD MILEAGE RATES	Business: 50.5 cents (Jan 1 - June 30); 58.5 cents (July 1 - Dec 31) Charity 14 cents; Medical/Moving 19 cents
ITEMIZED DEDUCTION PHASEOUT	Starts at AGI over $159,950 (MFJ, HOH, S) 79,975 (MFS) (MFJ, H of H, S), $78,200 (MFS)
SOCIAL SECURITY	7.65% (6.2 % SS +1.45 % Medicare) SS levied on first $102,000 in wages only ($6,324 max. SS paid by any individual). Household help: SS tax levied only after $1,600 paid.
KIDDIE TAX (Children under 18)	First $900 not taxed; $900 to $1,800 at child's rate; over $1,800 at parents' rate. (Beginning in 2008 kiddie tax applies to college students under the age of 24 who do not provide over 1/2 of their own support)
FOREIGN INCOME EXCLUSION	$87,600
SECTION 179 LIMIT	250,000 (285,000 for qualified enterprise zone property and qualified renewal community property) This is reduced by amount of sec 179 property from previous year exceeds $800,000.
CAPITAL GAINS RATES* Non-collectables ("collectables" are taxed at 28%)*	Assets held 1 year or less: taxed at ordinary income rates Assets held more than 1 year: 15% for taxpayers in brackets higher than 15%, 0% for taxpayers in 15% or lower tax bracket
CHILD TAX CREDIT	$1,000 for each child under age 17. Phaseout begins at $75K AGI for Single; $110K for MFJ and $55K for MFS.
AMT RATES	26% of income up to $175,000 ($87,500 (MFS)); 28% thereafter
AMT EXEMPTION	$33,750 (S, H of H); $45,000 (MFJ); $22,500 (MFS). Phaseout begins at $150K; $112.5K and $75K, respectively.
DIVIDEND INCOME	0% for 10% and 15% income tax rate payers; 15% for taxpayers in brackets higher than 15%
ANNUAL GIFT EXCLUSION	$12,000
ESTATE TAX EXCLUSION	$2,000,000
RETIREMENT PLAN WITHDRAWALS MANDATORY	Age 70 1/2
HOME SALE EXCLUSION	$250,000(S), $ 500,000 (MFJ)

ESTATES AND TRUSTS

If Taxable Income Is:	The Tax Is:
Not over $ 2,200	15% of taxable income
Over $2,200 but not over $ 5,150	$330 plus 25% of the amount over $2,200
Over $5,150 but not over $7,850	$1,067.50 plus 28% of the amount over $5,150
Over $7,850 but not over $10,700	$1,823.50 plus 33% of the amount over $7,850
Over $10,700	$2,764 plus 35% of the amount over $10,700

MARRIED FILING JOINT/SURVIVING SPOUSE

If Taxable Income Is:	The Tax Is:
Not over $16,050	10% of taxable income
Over $16,050 but not over $65,100	$1,605 plus 15% of the amount over $16,050
Over $65,100 but not over $131,450	$8,962.50 plus 25% of the amount over $65,100
Over $131,450 but not over $200,300	$25,550 plus 28% of the amount over $131,450
Over $200,300 but not over $357,700	$44,828 plus 33% of the amount over $200,300
Over $357,700	$96,770 plus 35% of the amount over $357,700

* Standard deduction $10,900 (+ $1,050 for each spouse age 65+ or blind, $2,100 for each spouse age 65+and blind.)

* Standard deduction (SD) for the dependents is the greater of $900 or earned income plus $300 (not to exceed the SD for dependent's filing status).

HEAD OF HOUSEHOLD

If Taxable Income Is:	The Tax Is:
Not over $11,450	10% of taxable income
Over $11,450 but not over $43,650	$1,145 plus 15% of the amount over $11,450
Over $43,650 but not over $ 112,650	$5,975 plus 25% of the amount over $43,650
Over $112,650 but not over $182,400	$23,225 plus 28% of the amount over $112,650
Over $182,400 but not over $357,700	$42,755 plus 33% of the amount over $182,400
Over $357,700	$100,604 plus 35% of the amount over $357,700

* Standard deduction $8,000 (+$1,350 for each spouse age 65+ or blind, $2,700 for each spouse age 65+ and blind.)

* Standard deduction (SD) for the dependents is the greater of $850 or earned income plus $300 (not to exceed the SD for dependent's filing status).

SINGLE

If Taxable Income Is:	The Tax Is:
Not over $8,025	10% of taxable income
Over $8,025 but not over $32,550	$802.50 plus 15% of the amount over $8,025
Over $32,550 but not over $78,850	$4,481.25 plus 25% of the amount over $32,550
Over $78,850 but not over $164,550	$16,056.25 plus 28% of the amount over $78,850
Over $164,550 but not over $357,700	$40,052.25 plus 33% of the amount over $165,550
Over $357,700	$103,791.75 plus 35% of the amount over $357,700

* Standard deduction $ 5,450 (+$1,350 for each spouse age 65+ or blind, $2,700 for each spouse age 65+ and blind.)

* Standard deduction (SD) for the dependents is the greater of $850 or earned income plus $300 (not to exceed the SD for dependent's filing status).

MARRIED FILING SEPARATE RETURNS

If Taxable Income Is:	The Tax Is:
Not over $8,025	10% of taxable income
Over $8,025 but not over $32,550	$802.50 plus 15% of the amount over $8,025
Over $32,550 but not over $65,725	$4,481.25 plus 25% of the amount over $32,550
Over $65,725 but not over $100,150	$12,775 plus 28% of the amount over $65,725
Over $100,150 but not over $178,850	$22,414 plus 33% of the amount over $100,150
Over $178,850	$48,385 plus 35% of the amount over $178,850

* Standard deduction $ 5,450 (+ $1,050 for each spouse age 65+ or blind, $2,100 for each spouse age 65+and blind.)

* Standard deduction (SD) for the dependents is the greater of $850 or earned income plus $300 (not to exceed the SD for dependent's filing status).

CORPORATE TAX RATES

If Taxable Income Is:	The Tax Is:
$0 to $50,000	15%
Over $50,000 but not over $75,000	$7,500 plus 25% of excess over $50,000
Over 75,000 but not over $100,000	$13,750 plus 34% of amount over $75,000
Over $100,000 but not over $335,000	$22,250 plus 39% of the amount over $100,0000
Over $335,000 but not over $10,000,000	$113,900 plus 34% of the amount over $335,000
Over $10,000,000 but not over $15,000,000	$3,400,000 plus 35% of excess over $10,000,000
Over 15,000,000 but not over $18,333,333	$5,150,000 plus 38% of amount over $15,000,000
Over $18,333,333	$6,416,666.54 plus 35% of the amount over $18,333,333

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This article originally appeared in The Business Owner Journal, the periodical of choice for owners of small and midsize private businesses. All rights reserved, D.L. Perkins LLC. © 2010.

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