The standard business automobile mileage rate deduction is 50.5 cents per
mile through 6/30/08 and 58.5 cents per mile effective 7/1/08.  The 2008 rate per mile for charitable services is 14 cents per mile.  The medical per mile rate is .19
through 6/30/08 and .27 effective 7/1/08.

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 limits are $5000 for 2008. Individuals age 50 as of 12/31/08 can make additional catch up contribution of $1000. You have until April 15, 2009 to make your contribution. There are no income limits for contributions to a Traditional IRA, but deductible limits and thresholds apply.  You must have earned income to contribute. 

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

For 2008, the “kiddie tax” applies to unearned income in excess of $1,800 for children.

Alternative motor vehicle credits are available, 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 0%.   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 $1,800 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 $48,000 to $58,000 and joint taxpayers with AGI of $96,000 to $116,000.

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 wage base for 2009 is $106,800:

New add-on to the standard deduction for real estate taxes. Up to $500 for single taxpayers and $1,000 for joint filers.

The 2008 tax rates are as follows:

	Single	Married-Joint
10%	$          0 - $   8,025	$        0 - $ 16,050
15%	8,025 -    32,550	16,050 -    65,100
25%	32,550 -    78,850	65,100 -  131,450
28%	78,850 -  164,550	131,450 -  200,300
33%	164,550 -  357,700	200,300 -  357,700
35%	Over 357,700	Over 357,700

  

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 0% capital gain rate applies to qualified dividends received at any time
in 2008.

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