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 |
