2008 Tax Changes
Click On A Question Below To Expand/Collapse- Economic Stimulus Payment
The Economic Stimulus payment you received in the late spring or early summer is not taxable income. However, if you received less than the full amount (either $300, $600 or $1200 depending on your situation) you may be entitled to an additional payment. Please include the amount you received in your information, and IRS notice 1378 if you have it.
- First Time Home Buyer's Credit
If you bought a main home after April 8, 2008, and before January 1, 2009, and did not own a main home in at least 3 years, you may be eligible for a credit of up to $7500. However, even though this is called a "credit," it is in reality a no interest loan from the IRS. Please contact us for more information about this credit.
- Real Estate Taxes (Standard Deduction + Property Taxes)
If you claim the standard deduction AND own a home, you may be eligible for a standard deduction up to $1000 higher. This does not apply to anyone who itemizes (Schedule A).
- Mileage Rates for 2008
2008 has 2 different mileage rates. The rate from Jan 1 - June 30 is 50.5 cents per mile. The rate from July 1 - Dec 31 is 58.5 cents per mile. Please make sure to separate your mileage numbers when preparing your information.
- Social Security Ceiling
The Social Security Ceiling is $102,000. This means earned wages after this amount are not subject to Social Security tax.
- Expired Tax Benefits
The following tax benefits have expired for 2008:
- Credit for non-business energy property.
