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2008 Federal Tax Brackets
Federal Tax Brackets
Standard Deductions and Exemptions
Filing Requirements
The US federal income tax system is progressive.
This means that income is taxed in layers, with a higher tax rate
applied to each layer. Below are the Tax Brackets for 2008 for Taxable
Income. Taxable Income is Adjusted Gross Income (AGI) less the
standard or itemized deductions, and less the personal exemption(s).
| Tax Brackets for 2008: Individuals |
Marginal
Rate |
Single |
Married Filing
Jointly |
Head of
Household |
Married Filing
Separately |
| 10% |
0 -
8,025 |
0 -
16,050 |
0 -
11,450 |
0 -
8,025
|
| 15% |
8,025 -
32,550 |
16,050 -
65,100 |
11,450 -
43,650 |
8,025 -
32,550
|
| 25% |
32,550 - 78,850 |
65,100-
131,450 |
43,650 -
112,650 |
32,550 -
65,725
|
| 28% |
78,850 -
164,550 |
131,450- 200,300 |
112,650 -
182,400 |
65,725 -
100,150
|
| 33% |
164,550- 357,700 |
200,300 - 357,700 |
182,400 - 357,700 |
100,150 - 178,850 |
| 35% |
over 357,700 |
over 357,700 |
over 357,700 |
over 178,850 |
Capital Gains
Short-term capital gains and non-qualified dividends for
individuals, estates and trusts are treated as ordinary income, and are
taxed as such. This rate applies to gains on securities held (exactly)
12 months or less, and to short-term capital gain distributions reported
by mutual funds.
Long-term capital gains for individuals, estates and trusts are taxed
at a maximum 15%. For taxpayers in the 10% and 15% tax bracket,
long-term capital gains are taxed beginning at 0%, up to the amount
required to reach the end of the 15% tax bracket, and the balance of
long-term capital gains is then taxed at 15%. This rate applies to gains
To qualify for long-term capital gain treatment, the security must be
held for more than 12 months.
| Tax Brackets for 2008: Irrevocable Trust |
| Credit Shelter Trust (CST); 'B' Trust;
Testamentary Trust |
| Marginal Rate |
Irrevocable Trusts |
| 15% |
0 - 2,200 |
| 25% |
2,200 - 5,150 |
| 28% |
5,150 - 7,850 |
| 33% |
7,850 - 10,700 |
| 35% |
over 10,700 |
Deductions and Exemptions 2008
| Deductions and Exemptions - Individuals 2008 |
| Exemptions |
| Personal Exemption |
$3,500 |
| Standard Deductions |
| Single (S) |
$5,450 |
| Married Filing Jointly (MFJ) |
$10,900 |
| Head of Household (HOH) |
$8,000 |
| Married Filing Separately (MFS) |
$5,450 |
| Dependent (see also kiddie tax) |
$900 |
| Additional Deductions |
| If Married Filing Jointly age 65 or older or blind |
$1,050 (+ standard deduction) |
| If Single age 65 or older or blind |
$1,350 (+ standard deduction) |
Filing Requirements 2008- Individuals
Income, filing status, and age determine whether an individual must
file a tax return. Generally, a 2008 return must be filed if an
individual's gross income is greater than the amount shown for their
filing status in the table below. The amount listed in the table
represents the total of the standard deduction, personal exemptions, and
the additional standard deduction due to age. Gross income is all income
in the form of money, goods, property, and services that is not exempt
from tax, including any income from sources outside the United States
(even if part or all of the foreign income may be excluded.) Proceeds
from sales or redemptions increase gross income to determine if a tax
return is required. Even if there is no tax liability on a sale or
redemption, a tax return, including
Schedule D is required.
| Filing Status 2008 Amount* |
| Single |
$8,950 |
| 65 or older |
$10,300 |
| Head of Household |
$11,500 |
| 65 or older |
$12,850 |
| Married Filing Joint |
$17,900 |
| One spouse 65 or older |
$18,950 |
| Both spouses 65 or older |
$20,000 |
| Married Filing Separate |
$8,950 |
*Do not include social security benefits unless you
are married filing a separate return and you lived with your spouse at
any time during 2008.
Visit the IRS Web site at
www.irs.gov for more
information.
Questions? Contact
Terri Whittington CPA
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