Every tax season, you all need to be aware of changes in the tax laws before preparing and filing your state and federal tax returns. You may miss out on a deduction or credit that you may now be eligible for due to changes in income levels. With this sluggish economy, decreases in 401k retirement savings and job uncertainty, any increase in your tax refund or decrease in taxes owed can make a difference to your bottom line.
Visit IRSTaxHelper.com for income tax preparation help.
Visit IRSTaxHelper.com for income tax preparation help.
5 Things You Should Know...
Hope Credit:
One of the big changes for 2008 tax filers struggling to pay college tuition is the increase in the Hope Credit. The maximum Hope Credit amount was increased from the 2007 amount of $1,650 to $1,800 for your 2008 taxes. This valuable education credit is only available for the first two years of college.
Standard Deductions Increased:
The increase in the standard deduction amounts is good news for the many tax filers who claim it. The changes were increased to: single, $5,450, married filing separately, $5,450, married filing jointly, $10,900 and head of household, $8,000.
Exemption Increase:
The 2008 amount available to taxpayers who claim exemptions increased to $3,500, from the 2007 amount of $3,400.
Earned Income Credit:
The 2008 income limit for working families with two children, filing jointly, increased to $41,646 from the 2007 amount of $39,783. The maximum amount of the credit also increased to $4,824 from the 2007 credit of $4,716.
Mileage Deduction Rates:
Thankfully, the IRS raised the mileage deduction rates for 2008 tax returns. This is good news for workers who travel extensively for work. The business rate increased to 50.5 cents per mile. Rates for medical, charitable and moving mileage also increased.
One of the big changes for 2008 tax filers struggling to pay college tuition is the increase in the Hope Credit. The maximum Hope Credit amount was increased from the 2007 amount of $1,650 to $1,800 for your 2008 taxes. This valuable education credit is only available for the first two years of college.
Standard Deductions Increased:
The increase in the standard deduction amounts is good news for the many tax filers who claim it. The changes were increased to: single, $5,450, married filing separately, $5,450, married filing jointly, $10,900 and head of household, $8,000.
Exemption Increase:
The 2008 amount available to taxpayers who claim exemptions increased to $3,500, from the 2007 amount of $3,400.
Earned Income Credit:
The 2008 income limit for working families with two children, filing jointly, increased to $41,646 from the 2007 amount of $39,783. The maximum amount of the credit also increased to $4,824 from the 2007 credit of $4,716.
Mileage Deduction Rates:
Thankfully, the IRS raised the mileage deduction rates for 2008 tax returns. This is good news for workers who travel extensively for work. The business rate increased to 50.5 cents per mile. Rates for medical, charitable and moving mileage also increased.
IRS Tax Helper
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