My Personal Finance Journey

Personal finance observation, musing and decisions in a journey toward financial independence by 2020 with at least $3 million.


By Topics

Overall:
0. About (10)
1. My Progress (139)
2. Car & Home (107)
3. Credit (138)
4. Banking (33)
5. Saving (49)
6. Investing (308)
7. Taxes (89)
8. Spending (74)
9. Misc (97)
A. Archive (49)



MONTHLY ARCHIVE

Feb 2014 (3)
Jan 2014 (6)
Jan 2012 (1)
Apr 2011 (1)
Mar 2011 (1)
Feb 2011 (1)
Jan 2011 (1)
Dec 2010 (1)
Oct 2010 (1)
Sep 2010 (1)
Aug 2010 (1)
Jul 2010 (1)
Jun 2010 (1)
May 2010 (1)
Apr 2010 (1)
Mar 2010 (6)
Feb 2010 (2)
Jan 2010 (7)
Dec 2009 (3)
Feb 2009 (4)
Jan 2009 (8)
Dec 2008 (1)
Jun 2008 (2)
May 2008 (2)
Apr 2008 (5)
Feb 2008 (3)
Jan 2008 (15)
Dec 2007 (32)
Nov 2007 (6)
Oct 2007 (8)
Sep 2007 (9)
Aug 2007 (24)
Jul 2007 (2)
Jun 2007 (1)
May 2007 (3)
Apr 2007 (4)
Mar 2007 (4)
Feb 2007 (13)
Jan 2007 (6)
Dec 2006 (3)
Nov 2006 (7)
Oct 2006 (7)
Sep 2006 (6)
Aug 2006 (4)
Jul 2006 (10)
Jun 2006 (1)
May 2006 (3)
Apr 2006 (2)
Mar 2006 (6)
Feb 2006 (6)
Jan 2006 (3)
Dec 2005 (1)
Nov 2005 (9)
Oct 2005 (8)
Sep 2005 (13)
Aug 2005 (25)
Jul 2005 (16)
Jun 2005 (17)
May 2005 (19)
Apr 2005 (20)
Mar 2005 (24)
Feb 2005 (23)
Jan 2005 (36)
Dec 2004 (40)
Nov 2004 (34)
Oct 2004 (17)
Sep 2004 (21)
Aug 2004 (59)
Jul 2004 (37)
Jun 2004 (31)
May 2004 (29)
Apr 2004 (52)
Mar 2004 (49)
Feb 2004 (49)
Jan 2004 (31)
Dec 2003 (48)
Nov 2003 (52)
Oct 2003 (29)
Sep 2003 (8)
Aug 2003 (5)
Jul 2003 (2)
Jun 2003 (2)
May 2003 (5)
Apr 2003 (2)
Mar 2003 (2)
Feb 2003 (3)
Jan 2003 (29)



 

What You Should Know About 2008 Individual Income Tax Returns

Contributed by mm | February 2, 2009 4:29 AM PST

taxicon2009.jpgThe cliché goes that there are only two things remain constant in this world: death and taxes. With this year's April 15 deadline approach, do you know some important tax law changes that might affect your individual income tax return?

Below is a concise compilation from CCH CompleteTax of what you need to know about your 2008 tax return:
 
Exemptions

Personal exemption. This increased to $3,500 per person for 2008.

AMT exemption. The AMT exemption increased for 2008 to $69,950 for joint filers and surviving spouses, $46,200 for single filers and $34,975 for married persons filing separate returns.

Deductions

Standard deduction. This increased for 2008 to $10,900 for joint filers and surviving spouses; $8,000 for those filing as head of household; and $5,450 for single filers and married persons filing separate returns.

Temporary property tax deduction added to standard deduction. A temporary deduction, available for 2008 only, allows taxpayers who do not itemize deductions a limited deduction for state and local real property taxes. This increases the amount of their standard deduction by the amount of real property taxes they paid in 2008 or by $500 ($1,000 for joint filers), whichever is less.

Standard mileage rate. The standard mileage deduction rate for business and medical travel for 2008 split at mid-year. From January 1 through June 30, 2008, the deduction was 50.5 cents per mile for business and 19 cents for medical travel; and from July 1 through the end of the year, the deduction was 58.5 cents for business and 27 cents for medical travel. The standard mileage rate for charitable travel remained the same throughout 2008 at 14 cents per mile.

IRA deduction. The maximum IRA deduction allowed per person increased to $5,000 in 2008. Those who were at least 50 years old can make an additional catch-up contribution of $1,000 to their IRA (through April 15, 2009).

Credits

Recovery rebate credit. People who did not receive a full economic stimulus payment based on their 2007 income tax returns may be eligible for a recovery rebate credit. The recovery rebate credit is based on a taxpayer's 2008 tax situation, which may be different from 2007, making them eligible for additional rebate credit.

First-time homebuyer credit. A first-time homebuyer credit of up to $7,500 can be claimed by taxpayers who purchased their first home after April 9, 2008. This credit also will be available in 2009 to taxpayers purchasing their first home before July 1, 2009.

Exclusions
Estates. The amount that can be excluded from an estate for estate tax purpose remains $2 million for 2008.

Gifts. The amount of gifts that can be excluded from taxes remains $12,000 per taxpayer for 2008.

Disaster Relief

Tax relief. Taxpayers in two disaster areas: the Kansas disaster area (May 4, 2008 storms) and the Midwestern disaster areas (May 20 – July 30, 2008 storms and flooding) are subject to a variety of tax benefits including special rules to allow for borrowing from IRAs and other qualified retirement accounts.

One thing I didn't know before is the "First Time Homebuyer Credit". I probably won't jump the gun to buy a new property just because of this, but if you already bought one, the $7,500 15-year interest-free loan can be a nice cash flow enhancer for your financials.

This Post Has Received 1 Comment. Share Your Opinions Too.


lieben Commented on March 5, 2009

Interessante Informationen.


Add Your Comments










Remember personal information?




(It will take a few moments for your comment to be published. Please do not close the window until then.)


Read More ... 89 Posts In The Same Category










This page was last rebuilt at February 09, 2014 08:14 AM PST. (558 Words)
 

RSS FEED





PERSONAL FINANCE BLOGS I READ

Consumerism Commentary
Get Rich Slowly
My Money Blog
All Financial Matters
The Simple Dollar






.



Copyright 2003-2014, PFBlog.com. All Rights Reserved. (Privacy Policy)