Expand Your 2008 Tax Benefits.
- The contribution amount allowed for Roth IRAs begins to phase out for joint filers with incomes exceeding $159,000 and $101,000 for singles or heads of household.
- For contributions to a traditional IRA, the deduction phase-out range for an individual covered by a retirement plan at work begins at income of $85,000 for joint filers and $53,000 for a single person or head of household.
- Participants in most employer-sponsored 401(k) plans and 403(b) plans for employees can contribute up to $15,500. Individuals, age 50 or over, can make an additional contribution of up to $5,000.
- The annual contribution limit for most defined contribution plans, is $46,000.
- The value of each personal and dependency exemption, available to most taxpayers, is $3,500.
- The new standard deduction is $10,900 for married couples filing a joint return, $5,450 for singles and married individuals filing separately and $8,000 for heads of household.
- The maximum Hope credit of $1,800 is available for the first two years of post-secondary education.
Happy Holidays
Warmest wishes for a happy holiday season and a prosperous 2008.
Written by Ben Lawler, CPA
CEO & President of ProActive Advisors, Inc.