Income Tax 2008

Income Tax 2008 - Tax Brackets, Exemptions, Deductions, and more about Federal Income Tax and State Income Tax Return.




2008 Individual Income Tax Rates, Deductions and Exemptions

Check the next link to learn more about the latest Tax Changes for Individuals.

Tax return due 2008: April 15, 2009, unless you file an extension with form 4868 until October 15, 2009.

You have to pay federal income tax and on top of that state income tax in most states. Your tax bracket depends upon your income and your tax-filing classification.


There are six federal income tax brackets (ranging from 10% to 35%), the brackets per state vary. There are five classifications: singlemarried filing jointlyqualified widow or widower,married filing separately, and head of household.


2008 Individual Federal Income Brackets and Tax Rates

Tax Rate
Single Married Filing
Jointly or qualifying widow(er)
Married Filing
Head of
10% $0 - $8,025 $0 - $16,050 $0 - $8,025 $0 - $11,450
15% $8,025 - $32,550 $16,050 - $65,100 $8,025 - $32,550 $11,450 - $43,650
25% $32,550 - $78,850 $65,100 - 131,450 $32,550 - $65,725 $43,650 - 112,650
28% $78,850 - $164,550 $131,450 - $200,300 $65,725 - $100,150 $112,650 - $182,400
33% $164,550 - $357,700 $200,300 - $357,700 $100,150 - $178,850 $182,400 - $357,700
35% $357,700 and more $357,700 and more $178,850 and more $357,700 and more


How does it work? For example: a single without children pays income tax above a filing threshold (see below) of $8,950. This threshold is - not for 65 or older and qualified widower - the Standard Deduction (see below) of $5,450 plus the Personal Exemption (see below) of $3,500. So, a single would actually pay 0% over the first $8,950 of income. After subtracting this amount from her or his income, the brackets start to work. Over the next $8,025 a single pays 10% tax; 15% over the amount between 8,025 and $32,550 etc.


2008 Personal Filing Threshold

under 65
Married Filing jointly 
under 65
Head of Household
under 65
0 children $8,950 $17,900 $11,500
1 child $12,400 $21,400 $15,000
2 children $15,900 $24,900 $18,500

Deductions: Individual tax payers are allowed a choice when preparing their income tax returns. They can itemize their deductions from a list of allowable items and subtract those itemized deductions (see below) and their personal exemption deductions (see below) from their AGI to get their taxable income. Or they can choose to subtract the standard deduction (see below) and their personal exemptions. The choice between standard and itemized deduction depends on:

  • a comparison between both types of deductions: what choice gives more money to subtract?
  • do you have kept records of the items you want to substract? - you need them as prove.
  • if you are filing as 'Married, Filing seperately', and your spouse itemizes, you have to do that to.

2008  Exemptions: for yourself (personal exemption), spouse (if you are married) or your dependents: $3,500 per person.

The personal exemption is not a subject to federal income tax, but it is the minimal amount of money you need to get by at a subsistent level. The Exemption amounts claimed are subject to a phaseout when the taxpayer's AGI exceeds a threshold amount. All exemption amounts claimed on a return are reduced by 2 percent for each $2,500 ($1,250 for a married individual filing separately) of AGI in excess of the appropriate threshold amount.

Exemption Phaseout 2008

Married Filing 
Married Filing
Head of 
Phaseout begins 
when AGI exceeds
$159,950 $239,950 $119,975 $199,950
Phaseout completed 
when AGI exceeds
$282,450 $362,450 $181,225 $322,450

You can take an exemption for yourself  - the personal exemption - or for your dependents, but you cannot do that if you can be claimed as a dependent by another taxpayer - even if this taxpayer doesn't actually claim you as a dependent. If you are married you can claim an exemption for your spouse filing jointly or separately - only if another taxpayer doesn't claim your spouse  as a dependent. You cannot claim a person dependent unless that person is your qualifying child orqualifying relative.

You must always list the social security number (SSN) of any dependent for whom you claim an exemption. If you don't list the SSN the exemption could be denied.


2008 Personal Standard Deductions 

Deductions Single Married Filing jointly 
Married Filing Separately Head of Household Dependents
Standard $5,450 $10,900 $5,450 $8,000 the greater of $900 or the sum 
of $300 plus 
earned income
Blind/Elderly $1,350 $1,050 $1,050 $1,350  

2008 Itemized Deductions:  to come, see till then: Inflation Adjustments affecting Individual Taxpayers in 2008


2008 State Income Tax: TO COME

Sources and more info: