The standard business automobile mileage rate deduction is 50.5 cents per
mile for 2008, up from 48.5 cents per mile.  The 2007 rate per mile for
charitable services is 14 cents per mile.  The medical per mile rate is .20
for 2007.

Medical expenses including health insurance are deductible as itemized deductions only to the extent that they exceed 7.5% of your adjusted gross income.

Social Security recipients with a modified income over $34,000 for singles,
or $44,000 for married couples, will have 85% of their benefits taxed. 
Lower modified income will result in either 50% or 0% benefits taxed.

Individual Retirement Accounts: If your adjusted gross income is no more than $99,000 ($156,000 if married filing jointly), you have until April 15, 2008 to
make a contribution to a Roth IRA for the 2007 tax year.  There are no income
limits for contributions to a Traditional IRA but deductible limits and thresholds apply.  You must have earned income to contribute.  A couple may contribute a
total of $8,000 to their IRA’s if together they have at least $8,000 in earnings.  Individuals age 50 as of 12/31/07 can make additional “catch-up contributions
of $1,000.

Health insurance premiums for the self-employed are 100% deductible. 

For 2007, the “kiddie tax” applies to unearned income in excess of $1,700 for children under age 18.

Hybrid vehicles purchased in 2007 can qualify for a maximum credit of $3,400,
based on models.

There is a $1,000 child tax credit for your dependent child under 17.  The credit
is reduced for married taxpayers with AGI over $110,000.

The maximum tax rate on net long-term (assets held for more than one year) capital gains is 15%. For taxpayers in the 10% and 15% brackets, the rate is 5%.   A 25% rate applies to real estate depreciation recapture and a 28% rate applies to collectibles held more than one year.

Education credits:  Hope and Lifetime Learning credits are available for expenses
paid for post-secondary education.  The maximum Hope credit is $1,650 for the
first two years of school.  The maximum Lifetime Learning credit is $2,000 for an unlimited number of years.  Both credits phase out for single taxpayers with AGI
of $47,000 to $57,000 and joint taxpayers with AGI of $94,000 to $114,000.

Qualifying individuals may claim an above-the-line deduction for up to $2,500 of interest paid on a qualified higher education loan with an income phaseout.

Social Security and Medicare tax withholding rates for 2008 are:

The 2007 tax rates are as follows:

	Single	Married-Joint
10%	$          0 - $   7,825	$        0 - $ 15,650
15%	7,825 -    31,850	15,650 -    63,700
25%	31,850 -    77,100	63,700 -  128,500
28%	77,100 -  160,850	128,500 -  195,850
33%	160,850 -  349,700	195,850 -  349,700
35%	Over 349,700	Over 349,700

  

The business meal and entertainment expense deduction is 50% of otherwise allowable costs.  Also, the deduction for club dues is non-deductible for
entertainment activities.  Professional and service organization dues are deductible.

Social Security earnings limit for 2008 under age 65 is $13,560.  Once an employee reaches full retirement age, benefits are not reduced, regardless of earnings.

Above the line education deduction up to $4,000 with an income phaseout.

529 college savings plans provide tax-advantaged savings.

Dividends paid by most corporations are taxable as long-term capital gains.  The
new 15% or 5% capital gain rate applies to qualified dividends received at any time
in 2007.

Charitable contributions of cash must have receipts. Noncash donations of $250 require written acknowledgement from the organization.