Federal Income Tax Tables - 2008
Filing Status If Taxable Income Is Between $0 $8,025 8,025 32,550 32,550 78,850 78,850 164,550 164,550 357,700 357,700 Up $0 $16,050 16,050 65,100 65,100 131,450 131,450 200,300 200,300 357,700 357,700 Up $0 $8,025 8,025 32,550 32,550 65,725 65,725 100,150 100,150 178,850 178,850 Up $0 $11,450 11,450 43,650 43,650 112,650 112,650 182,400 182,400 357,700 357,700 Up Pay $0.00 802.50 4,481.25 16,056.25 40,052.25 103,791.75 $0.00 1,605.00 8,962.50 25,550.00 44,828.00 96,770.00 $0.00 802.50 4,481.25 12,775.00 22,414.00 48,385.00 $0.00 1,145.00 5,975.00 23,225.00 42,755.00 100,604.00 Plus Percent on Excess st Over 1 Column 10.0% 15.0% 25.0% 28.0% 33.0% 35.0% 10.0% 15.0% 25.0% 28.0% 33.0% 35.0% 10.0% 15.0% 25.0% 28.0% 33.0% 35.0% 10.0% 15.0% 25.0% 28.0% 33.0% 35.0%
Single tax payers
Married filing jointly
Married filing separately
Head of household
Example Married Filing Jointly $70,000 Taxable income st 65,100 is Tax on the 1 4,900 x 25.0% is Tax on the remaining Total Tax
$8,962.50 1,225.00 $10,187.50
Continued...
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Presented by: Michael Amato
Federal Income Tax Tables - 2008
Personal and Dependent Exemptions
Amount of Exemption for Each Dependent Taxpayer Spouse Child 3,200 $3,200 $3,200 3,300 3,300 3,300 3,400 3,400 3,400 3,500 3,500 3,500 Adjusted for Inflation
Year 2005 2006 2007 2008 2009
There is a phase-out of the personal and dependency exemptions for taxpayers with adjusted gross incomes in excess of the following threshold amounts: married filing jointly - $239,950; head of household - $199,950; single taxpayer - $159,950; and married filing separately - $119,975. Each allowable exemption is reduced by 2% for each $2,500 of adjusted gross income ($1,250 for married persons filing separate returns) in excess of the threshold amount.1
Standard Deduction - Persons Who Do Not Itemize Deductions
Amount of Deduction Married Heads of Separate Household 5,000 7,300 5,150 7,550 5,350 7,850 5,450 8,000 Adjusted for Inflation
Year 2005 2006 2007 2008 2009
Married Jointly 10,000 10,300 10,700 10,900
Single 5,000 5,150 5,350 5,450
Year 2005 2006 2007 2008 2009
Additional Standard Deductions (Each Spouse) 65 or Older Blind Married Single Married Single 1,000 1,250 1,000 1,250 1,000 1,250 1,000 1,250 1,050 1,300 1,050 1,300 1,050 1,350 1,050 1,350 Adjusted for Inflation
Children: Children with income who can be claimed as dependents on a parent’s return (even if the exemption has no benefit due to the phase-out) cannot take their own personal exemption. A child’s standard deduction is up to $900 for unearned income or up to $5,450 for earned income.
1
For higher-income taxpayers, the deductibility of personal exemptions is generally reduced, as adjusted gross income rises. Under EGTRRA of 2001, this reduction in deductibility is gradually phased-out, by 1/3 in 2006-2007, and by 2/3 in 2008-2009. In 2010 there is no reduction in personal exemptions, regardless of the level of income. However, unless the law is changed, in 2011 the prior rules will again apply.
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Presented by: Michael Amato