2008 Federal Income Tax Brackets: Official IRS Figures

Fred responds:
Posted: January 14th, 2008 at 3:47 pm

Good information. I think an analysis that shows what effect these changes have on “typical” income levels would be very interesting. E.g. if you made $60,000 last year, and you got a 3% (or whatever the current inflation rate is) raise, do you pay more or less in taxes as a percentage of your income?

BeyondtheConsumer responds:
Posted: January 14th, 2008 at 4:32 pm

So I guess making $32,551 would be a real bummer.

Money Blue Book responds:
Posted: January 14th, 2008 at 4:38 pm

BeyondtheConsumer -
Keep in mind that these are marginal tax rates. It never actually hurts to make more. Only the extra amount is taxed at the higher rates. I bring this up because I think many people are strangely afraid of making more than a certain bracket amount because they fear higher taxes. That would be the case if we had a straight flat tax based on total adjusted gross income.
-Raymond

Rick Morley responds:
Posted: January 14th, 2008 at 6:18 pm

MBB: There are cases where earning more could hurt. For instance, long term capital gains taxes are based on your marginal tax rate. If your marginal rate is 10% or 15%, your long term capital gains tax rate is 5%. If your marginal rate is 25% or higher, your capital gains rate is 15%. Therefore, it is possible that if you had a large amount of capital gains and earned 32551, you could pay far more in taxes than if you earned 32549. And actually, in 2008, they’ve changed the law a little bit to make the capital gains rate 0% for the lower two marginal tax brackets. I don’t know all the details about that, but the principle remains the same.

RacerX responds:
Posted: January 14th, 2008 at 7:52 pm

Thanks for the information. It wonder how long the delays will actually be getting refunds. H&R will be doing a lot of Rapid Refunds at 500% interest again!

ChristianPF responds:
Posted: January 15th, 2008 at 1:14 pm

@MBB
You brought up a good point, you are right that a lot of people don’t understand how the marginal rates work - and it would be a shame to turn down income or take other drastic measures to try to sneak into the lower bracket…

@Rick
Good points as well…

Skiier responds:
Posted: January 15th, 2008 at 1:52 pm

I was told that for 2008, there is a tax reduction retroactive all the way back to Jan 1, 2007? Has anybody heard about this and if yes, where can I get more details?

yvonne anderson responds:
Posted: January 22nd, 2008 at 6:17 pm

im a married mother of 4 childern.i haven gotten my w2 yet but my estamated ytd income is around 19,000 and my husband around 30,000,am i over the limit to recieve earned income credit?

Heather responds:
Posted: January 23rd, 2008 at 5:09 pm

So then, is it true that if you are in a 25% tax bracket that you can then also expect an additional 8% or so taken out in state and/or city tax?

Ric Sobral responds:
Posted: January 25th, 2008 at 9:15 am

Until tax year 2006, my wife and I have always filed jointly. This tax year (2007) we intend to file separately. I intend to file with itemized deductions while she intends to file using standard deductions. Is this allowable? If not, what is our best recourse?

ERICA responds:
Posted: January 25th, 2008 at 9:30 am

i just have a quick question i didn’t make very much money 2007 i think i made like $3000.00 with 3 kids and head of household filing single would i be able to file taxes and get a refund??? thanx for any responses!!

Heather responds:
Posted: January 25th, 2008 at 12:40 pm

Thanks, Jim. I live in NY and the taxes are ridiculous. I get an extra tax because I live in Brooklyn but work in Manhattan.

Heather responds:
Posted: January 25th, 2008 at 12:42 pm

to Erica:

Singles
Determine Eligibility:
If you earned less than $3,000 - unfortunately you’d get nothing.
If you earned more than $3,000 but paid no taxes, you’d get $300.
If you earned more than $3,000 and paid taxes, you get $600.
If you have children, add $300 per.
Determine Phaseout Reduction:
The phaseout levels begin at $75k and end at $87k, at a reduction of 5% per $1,000 over the lower limit. If you earn above $87k, you’re over and thus get nothing regardless of the math.

Couples
Determine Eligibility (appears to be the same as singles):
If you earned less than $3,000 - unfortunately you’d get nothing.
If you earned more than $3,000 but paid no taxes, you’d get $600.
If you earned more than $3,000 and paid taxes, you get $1,200.
If you have children, add $300 per.
Determine Phaseout Reduction:
The phaseout levels begin at $150k and end at $174, at a reduction of 5% per $1,000 over the lower limit. If you earned above $174k, you’re over and thus get nothing regardless of the math.

ERICA responds:
Posted: January 25th, 2008 at 2:19 pm

THANKX SO MUCH HEATHER ENJOY YOUR WEEKEND!

mikeg responds:
Posted: January 26th, 2008 at 10:07 am

I am married and I made around 29k aftrer my 401k the wife around 10k. What is the bonus refund I will get.

mikeg responds:
Posted: January 26th, 2008 at 10:10 am

and why do I keep hearing 800$

Armelle responds:
Posted: January 26th, 2008 at 8:11 pm

I am divorced and head of household. I agreed on the divorce papers to allow my non physical custodial ex-husband to declare our last child every other year on his taxes as he pays child support. Does it mean I will not get the $300.00 rebate , but that my ex will ?

Gil responds:
Posted: January 29th, 2008 at 12:53 pm

For Seniors - do you know that if you are receiving Social Security (SS) benefits and are in the 15% Tax Bracket, married filing jointly, that your marginal tax rate, the rate paid on every extra $1 of income, can be as high as 28%? That’s because for every extra $1 of income the amount of extra SS that is taxed can be as much as $0.85. Thus, for every $1 of extra income we pay tax on up to $1.85. I think this is outrageous.

Anonymous responds:
Posted: January 31st, 2008 at 12:19 pm

I only made 18,826 for 2007, I have 2 children and will file head of household
will I qualify for earned income credit?

megan responds:
Posted: January 31st, 2008 at 2:25 pm

Do you find your tax bracket before or after your standard deduction?
This is to say, If I made 35850 in 2007, I’d be in the 15% after my deduction.
And even less after student loan interest deductions…

thanks!

nicki responds:
Posted: February 1st, 2008 at 3:21 pm

My husband owes child support arrearage. I have to file a injured spouse every year to receive my portion of my tax return. I have one child of my own to claim. Will I get a rebate or will I have to do something like a form to get mine?

renee responds:
Posted: February 4th, 2008 at 6:44 pm

if you made about 1500.00 on w-2’s and the rest in self- employment about 8,000 will i be eligible for any rebates?

Yousuf-Lodi NJ responds:
Posted: February 5th, 2008 at 3:29 pm

I am married (religious) but didnt bother to get a state marriage license. My wife is a nursing student ( makes about 7-9k a year) on part time pharmacy tech and we do not have a kid. But here I make about 42,000 ( excluding my 401k)…I paid over 3600.00 in federal taxes, will I get all my federal tax back?

second question
Our income is around 50k without a kid, should we file joint or seperate…? how will it help our refunds or what not…Thanksssssssss

ISTHISREALLYHAPPENING responds:
Posted: February 7th, 2008 at 12:43 pm

WHAT IF YOU OWNED BACK CHILDSUPPORT AND ARE PAYING SUPPORT DO YOU STILL GET THE TAX STIMULUS MONEY? IS THIS MONEY DIFFERENT FROM SUPPORT MONEY?

J Smith responds:
Posted: February 11th, 2008 at 2:19 pm

I hope those of you who receive the “earned income tax credit” realize that “earned” means someone else earned it, the govt took it from them and gave it to you.

You parasites will eventually run out of people to steal from

BB responds:
Posted: February 28th, 2008 at 3:10 pm

^
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Amen, Brotha.

Richard responds:
Posted: March 13th, 2008 at 11:12 pm

I would disagree with the comment–

BeyondtheConsumer responds:
Posted: January 14th, 2008 at 4:32 pm

So I guess making $32,551 would be a real bummer.

That taxable income would indicate maximizing the 15% tax bracket, a strategy that can include converting IRAs to Roth IRAs to bring your income up to the bracket max. Over and over I am working with retirees who lament that they pay at a higher tax bracket than when they earned the money they sheltered in IRAs, 401ks, and other pre-tax, deferred accounts.

As a corollary to this strategy, I think anyone in the 15% bracket who has access to a Roth 401k should use it rather than the tax-deductible 401k.

Anonymous responds:
Posted: March 17th, 2008 at 6:40 pm

I MADE 3620.02 I HAVE 2 DEPENDENT WILL I GET A REFUND AND HOW MUCH

Adri responds:
Posted: March 27th, 2008 at 11:07 am

What is the most each spouse can make in 2008 to be in the 15% bracket if married and filing jointly? 25% bracket?

Amy responds:
Posted: April 9th, 2008 at 10:05 am

I am in sales and earn a monthly commission added to my paycheck. If it is substantial (over 2K) they ask me if I want to split it. For example my last check will have, after all deductions are made, $3,600 in taxable income. This should still keep me in the 10% tax bracket correct?

samy responds:
Posted: April 10th, 2008 at 11:26 am

i just have question and hope some one can help me
i all ready get a tax refund but i earned more than 3000 and paid Taxes will i get more money ,?and when ?
thank you

yourname responds:
Posted: April 15th, 2008 at 7:54 am

i dont understand this.

ANNIE responds:
Posted: April 29th, 2008 at 2:16 pm

I would like to know who are we getting the taxes refund money from the
State or The Federal /regarding the money amount that the President issue.

jenb responds:
Posted: May 5th, 2008 at 6:13 am

Know someone that has gotten the rebate already and there was state taxes taken out on the rebate. Federal may not get us next year but the state will…..there is never something for nothing.

Jeff Knapp responds:
Posted: May 14th, 2008 at 4:11 pm

If you fill out your W 4 as all zero’s and claim no one What percent is used to hold out of your pay? Is there a certain percent? I know that I do that and have them hold at higher single rate, which has ALWAYS been 14.888 or 15 percent, however my wife did not hold a single rate just all zero’s and her employer DID NOT HOLD OUT enough which cost us paying in this year? I always thought there was a percentage that MUST be withheld and was advised it should be no less than ten percent? Any answers to this