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2008 Projected Tax Brackets

Contributed by mm | September 24, 2007 4:43 AM PST

The renowned tax consulting firm CCH has released its projection of federal income tax brackets for 2008. Here are the major changes that will affect our family (when we file joint returns):

Tax Brackets

Joint returns. For married taxpayers filing jointly and surviving spouses, the maximum taxable income subject to the 10-percent bracket will rise from $15,600 in 2007 to $16,050 in 2008; the top of the 15-percent tax bracket will increase from $63,700 to $65,100. The bracket amounts for the remaining tax rates show similarly proportionate increases: $131,450 as the maximum for the 25-percent bracket (up $2,950 from 2007); $200,300 for the 28-percent bracket (up $4,450 from 2007); and $357,700 for the 33-percent bracket (up $8,000 from 2007). Amounts above the $357,700 level will be taxed at the 35 percent rate.

Standard Deduction

The 2008 standard deduction will rise by $100, to $5,450, for single taxpayers; by $150, to $8,000, for heads of households; by $200, to $10,900, for married taxpayers filing jointly and surviving spouses; and by $100, to $5,450, for married taxpayers filing separately. The standard deduction for dependents will remain at $900 (or earned income plus $300).

Personal Exemptions

The amount of personal and dependency exemptions for 2008 will increase from the 2007 level by $100 to $3,500.

Other Tax Figures

Roth IRAs. The AGI limits for maximum Roth IRA contributions are: married filing jointly, $159,000 (formerly $156,000); other filing statuses, other than married filing jointly or separately, $101,000 (formerly $99,000).

IRAs. The AGI limits for maximum IRA contributions for individuals covered by a retirement plan are: married filing jointly, $85,000; head of household and single, $53,000.

This Post Has Received 86 Comments. Share Your Opinions Too.


Fred333 Commented on September 24, 2007

Nice post. I didn't know that were going to be making these changes. Thanks.


AF Commented on September 26, 2007

Well, judging by the amounts changed it seems to be a regular adjustment for inflation. Thanks for the update though.


Tawny Kitaen Fan Commented on September 27, 2007

Thank you so much for the tax info.


AT Commented on October 10, 2007

Any comments on the 401(k) & IRA contribution limits?


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