| There have been some changes in the tax-law again | | | | real estate taxes you paid or if you had a disaster loss |
| this year, so it's a good idea to go over your list of tax | | | | from a federally declared disaster. |
| deductions a couple of times so that you have | | | | Business expenses have changed. The standard |
| included the changes that will affect your return. One | | | | mileage rate has increased to 50.5 cents per mile for |
| of the big changes this year is that the exemption for | | | | the first six months of 2008 which is 2 cents higher |
| the Alternative Minimum Tax has been increased. | | | | than 2007 and 58.5 cents for the rest of 2008. If you |
| Some other tax credits and deductions that were | | | | keep a 12 month expense worksheet remember to |
| going to expire have been extended. There's a new | | | | increase the mileage rate for the last six months of |
| standard personal property tax deduction and first time | | | | 2008. |
| homeowners receive a special credit that is an | | | | The exemption value for each personal and |
| additional tax deduction. | | | | dependent has increased to $3500,which is up $100 |
| Credits are available for Retirement Savings and the | | | | from 2007.This is just one of over three dozen |
| payments received from the economic stimulus | | | | individual and business tax deductions that are |
| package are not taxable and don't need to be | | | | adjusted each year to keep up with inflation. For the |
| reported on your 2008 tax return. As a taxpayer you | | | | convenience of your employer and for your personal |
| may qualify for the Recovery Rebate Credit if you did | | | | convenience a list of all the changes can be found in |
| not get a stimulus payment. Instructions listing whether | | | | the publication: 2008 Inflation Adjustments Widen Tax |
| you qualify are listed on form 1040, 1040 A and 1040 | | | | Brackets, Change Tax Benefits. |
| EZ. | | | | Child care tax credit remains the same as 2007, but |
| The list of tax deductions still includes the deduction for | | | | the tax on a child's investment income applies if the |
| state and local taxes on form 1040 Schedule A, Line 5. | | | | income is over $1800 and the child is under 18 years |
| The educator expense deduction on Line 23 or Form | | | | old or is 18 and has an income that is equal to or less |
| 1040A line 16. Tuitions and fees on form 8917 and the | | | | than half of his or her total support or is over 18 and |
| District of Columbia first-time homebuyer credit on | | | | under 24 and was a student during 2008 and had |
| Form 8859 are the same as 2007. | | | | earned income equal or less than half of his or her |
| The non-business energy property credit for energy | | | | support. |
| efficient insulation, windows, doors furnaces and water | | | | Another change that can be added to the list of tax |
| heaters in your main residence is not available in 2008, | | | | deductions is the self-employment tax changes. |
| but the residential energy-efficient property credit is | | | | Anyone who receives Social Security Retirement or |
| and will continue through 2016. Wind energy and | | | | disability benefits or any Conservation Reserve |
| geothermal heat pumps credits can be applied to your | | | | Program payments is now exempt from the |
| 2008 itemized deduction. The standard deduction | | | | 15.3-percent social security self-employment tax. |
| changes a little this year because you can claim an | | | | Instructions on how to fill out the forms for this |
| additional standard deduction based on state or local | | | | deduction is in Publication 225, Farmer's Tax Guide. |