Some Basic Changes For 2008 Income Tax
Posted on 05. Dec, 2008 by Terry in Income Taxes, Tax Changes
Well, I’m back from my Thanksgiving trip to the mountains and atempting to get ready for the upcoming Tax Season.
I’m going to do a series of posts on tax changes that will affect your Income Tax Return for this year and then I will do a series of posts on different types of business entities, such as Sole Proprietor, Partnerships, LLC and Corporate tax returns.
Inflation adjustments are made each year in order to keep up with inflation. I’ve already covered the rate changes for automobile mileage, so lets cover some more changes.
The value of each personal and dependency exemption will increase to $3500, up $100 from 2007.
The new standard deduction is $10,900 for married couples filing a joint return (up $200), $5450 for singles and married individuals filing separately (up $100) and $8000 for heads of household (up $150). Up to 60% of tax payers take the standard deduction, rather than itemizing deductions such as mortgage interest, charitable contributions and state and local taxes.
I’ll continue with these changes in my next post.
