Elderly and/or Blind Taxpayers: Taxpayers who are age 65 or older or who are blind receive an additional standard deduction amount that is added to the basic standard deduction listed above. To, qualify for the additional standard deduction amount, a taxpayer must be age 65 (or blind) before the close of his tax year. Two additional amounts will be allowed to an individual who is both over 65 and blind. The additional standard deduction amounts are:

Elderly and/or Blind Taxpayers	2007	2008
Married and surviving spouses	$ 1,050	$ 1,050
Heads of household	$1,300	$1,350
Singles	$1,300	$1,350

back to top

Mileage rates

Mileage rates	2007	2008
Business	$0.485 /Mile	$0.505/Mile(1/08-6/08) $0.585/Miles(7/08-12/08)
Relocation	$0.20 /Mile	$0.19 /mile(1/08-6/08( $0.27/Mile(7/08-12/08)
Charitable	$0.14 /Mile	$0.14 /Mile
Medical	$0.20 /Mile	$0.19 /mile(1/08-6/08( $0.27/Mile(7/08-12/08)

Election to expense certain depreciable business assets (Sec 179)

2006 - $108,000

2007 - $125,000

2008 - $250,000

Earnings Limitations for Recipients of Social Security Benefits
Social Security recipients under age 70 who have earnings in excess of an annual exemption amount are subject to a reduction in Social Security benefits. The table below lists the amounts that recipients of social security benefits can earn without suffering a reduction in benefits.

back to top

Earnings limitations for recipients	2007	2008
Age 62 to 64	$12,960 ann./$1,080 mon.	$13,560 ann./$1,130 mon.
Year Turning 65	$33,440 ann./$2,870 mon.	$36,120 ann./$3,010 mon.
Age 65 and older	No earnings limit	No earnings limit

Social Security recipients under age 65 who have earnings in excess of the annual exemption amount are subject to a $1 reduction in benefits for each $2 of earnings in excess of the exempt amount. Recipients turning age 65 with earnings in excess of the annual exemption are subject to a $1 reduction in benefits for each $3 earned over the exempt amount.(Only applies to earnings for months prior to attaining 65)

Payroll Taxes	2007	2008
FICA: Soc. Sec. & Medicare (Self-employed)	15.30%	15.30%
FICA: Soc. Sec. & Medicare (Employer or  Employee)	7.65%	7.65%
Social Security (FUTA) Rate	6.20%	6.20%
Social Security Taxable Wage Base	$97,500	$102,000
FUTA Wage Base	$7,000	$7,000

back to top

RETIREMENT PENSION PLANS	2007	2008
Maximum Annual Benefit for Defined Benefit Plan	$180,000	$185,000
Maximum Annual Contribution Defined Contribution Plan	$45,000	$46,000
Highly Comprensated Employee Definition(In general)	$100,000	$105,000
SEP De minimis Compensation Amount	$500	$500
SEP Nondiscrimination Compensation Amount	$225,000	$230,000
401 (k) Maximum Compensation Amount	$225,000	$230,000
401 (k) Maximum Exclusion	$15,000	$15,500
401 (k), 403(b), and 457 Plans Catch Ups	$5,000	$5,000
IRA Deduction/Roth IRA Contribution Limit(In general)	$4,000	$5,000
IRA Catch Up 50 and older	$1000	$1,000
SIMPLE Contribution Limit	$10,500	$10,500
SIMPLE Catch Up 50 and older	$2,500	$2,500

For additional Deadline dates and articles Click Here.