 |
McCusker
& Associates - December, 2007
 Hello
and Happy Holidays!
There
is certainly an abundance of things to be happy about this
holiday season. Family and friends are at the top of the list,
but this year we also have some new things to put us in a
joyous mood.
We have
the World Champion Red Sox and the undefeated Patriots to
buoy our spirits. On the celebrity front, we have talk of
a Jackson 5 revival tour and Paris Hilton’s jail sentence
(why couldn’t it be for life) for which to be thankful.
And
on the political side the good cheer comes from presidential
candidate Ron Paul, who’s calling for the abolishment
of the Internal Revenue Service. Well, even if he does get
elected (if only the election were on April 15th) it’s
probably not going to save us from this year’s tax filing.
So to help you out, while we wait and pray, here are some
tax facts for years 2007 and 2008.
| Tax
Facts: |
|
|
| Standard
Deductions: |
2007 |
2008 |
| |
Married
Joint |
$10,700 |
$10,900 |
| |
Married
Separate |
$5,350 |
$5,450 |
| |
Single |
$5,350 |
$5,450 |
| |
Head
of Household |
$7,850 |
$8,000 |
| |
|
|
|
Personal
Exemptions:
|
$3,400 |
$3,500 |
2008
Tax Brackets:
|
|
|
| |
Married
Joint: |
|
|
| |
Taxable
Income: |
Rate: |
| |
$0
- $16,050 |
10% |
| |
$16,051
- $65,100 |
15% |
| |
$65,101
- $131,450 |
25% |
| |
$131,451
- $200,300 |
28% |
| |
$200,301
- $357,700 |
33% |
| |
over
$357,700 |
35% |
| |
|
|
|
| |
Single: |
|
|
| |
Taxable
Income: |
Rate: |
| |
$0
- $8,025 |
10% |
| |
$8,026 - $32,550 |
15% |
| |
$32,551
- $78,850 |
25% |
| |
$78,851 - $164,550 |
28% |
| |
$164,551
- $357,700 |
33% |
| |
over
$357,700 |
35% |
| |
|
|
|
| |
Head
of Household: |
|
|
| |
Taxable
Income: |
Rate: |
| |
$0
- $11,450 |
10% |
| |
$11,451 - $43,650 |
15% |
| |
$43,651
- $112,650 |
25% |
| |
$112,651 - $182,400 |
28% |
| |
$182,401
- $357,700 |
33% |
| |
over
$357,700 |
35% |
| |
2007/2008
Capital Gains Tax Rate: Federal 15%, Mass 5.3%
(In
2008 Taxpayers with a marginal tax bracket of 15% or
below will pay 0% federal capital gains tax.) |
| |
|
|
|
| |
|
2007 |
2008 |
| Traditional
& Roth IRA Contribution Limit |
$4,000 |
$5,000 |
| Additional
Allowable Contribution if >50 yrs old |
$1,000 |
$1,000 |
| |
|
|
|
401(k)
and 403(b) Employee Contribution
Limits |
$15,500 |
$15,500 |
| Additional
Allowable Contribution if >50 yrs old |
$5,000 |
$5,000 |
| |
|
|
SEP/IRA
Contribution Limits
(Self-Employed) |
$45,000 |
$46,000 |
| Additional
Allowable Contribution if >50 yrs old |
$5,000 |
$5,000 |
| |
|
|
| SIMPLE
IRA Employee Contribution Limits |
$10,500 |
$10,500 |
| Additional
Allowable Contribution if >50 yrs old |
$2,500 |
$2,500 |
| |
|
|
| Standard
Mileage Rates for Auto Use: |
| |
Business |
48.5
cents/mile |
50.5
cents/mile |
| |
Charitable |
14.0
cents/mile |
| |
Medical |
20.0
cents/mile |
19.0
cents/mile |
| |
Moving |
20.0
cents/mile |
19.0
cents/mile |
| |
|
|
| 2007
Child Tax Credit (children <17 at Dec. 31)
|
$1,000
|
| |
2007
“Kiddie Tax”: unearned income of
children <18 (was <14 in 2005) in excess of $1,700
will be taxed at the parents’ marginal tax rate. |
| |
|
|
|
| 2007
Annual Gift Tax Exclusion |
$12,000
|
I
hope this was of value to you. As always, I welcome your questions
and feedback. Please feel free to send an email
or call me at 978-256-1323.
Jim
McCusker
|
|
