Key 2008 Exemptions and Deductions

Listed here for your reference are key deduction rates for 2008.

Personal Exemptions

The personal exemption for each qualifying dependent increases by $100 for 2008.

  2008 2007
Exemption $3,500 $3,400

 

The exemption phases out by 2% for each $2,500 ($1,250 for married filing separately) by which your income is over:

  2008 Phase Out
Single $159,950
Married Filing Separately $119,975
Married Filing Jointly $239,950
Head of Household $199,950

2008 Alert: This phaseout amount is now reduced by 2/3rds in 2008.

Standard Deductions

Standard deductions for those who do not itemize are as follows:

  2008 2007
Single $5,450 $5,350
Married Filing Separately $5,450 $5,350
Married Filing Joint $10,900 $10,700
Head of Household $8,000 $7,850

 

If 65 or over and/or blind add:

  2008 2007
Single/Head of Household $1,300 $1,250
Married/Surviving Spouse $1,050 $1,000

 

Itemized Deduction Phaseout

Deductions are reduced by 3% of every dollar of Adjusted Gross Income (AGI) over $156,400 ($78,200 if married filing separately) up to a maximum phaseout of 80% of your itemized deductions. Your medical expenses, investment interest, casualty losses and gambling losses are excluded. 2007 Alert: The phaseout amount noted above is now reduced by 1/3 in 2007.

Standard Mileage Rates

The standard mileage rates for 2007 are:

Mileage 1/6-6/30 7/1-12/31
Business Travel $0.505 $0.585
Medical/Moving $0.19 $0.27
Charitable Work $0.14 $0.14