2008 Federal Income Tax Brackets: Official IRS Figures
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Here are the Projected 2009 Federal Income Tax Brackets, projected in the same way and by the same people as did the last projection.
Last September a bunch of places started giving previews of the 2008 IRS tax brackets prior to the IRS revealing them, such as Kiplinger’s and the WSJ, and I wanted to compare them to the actual 2008 tables. All in all, it appears that the calculations made by the experts were spot on when compared to the figures revealed by the IRS. It makes sense though because the calculations were based on government released inflation figures. Here are the official IRS tax bracket numbers:
2008 IRS Tax Brackets
| Tax Rate | Single | Married Filing Jointly |
| 10% | Not over $8,025 | Not over $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 |
2008 IRS Deduction, Exemption & Limit Changes
Finally, all the 2008 deduction and exemption values were published by the IRS in October, here are the notable increases (or unchanged values):
- Personal and dependency exemptions increase $100 to $3500 each.
- Standard deduction for married couples filing jointly increases $200 to $10,900. Singles and married filing separately increases $100 to $5,450. Heads of households get a $150 increase to $8,000.
- Maximum earned income tax credit (for low/moderate income workers and families with 2+ children) increases from $4716 to $4824. The income limit for this increased to $41,646.
- The maximum Hope credit increases $150 to $1,800.
- Roth IRA contribution limit phase outs begin at $101,000 (+$2k) for singles and HoH, $159,000 (+3k) for married.
- 401(k) and 403(b) contribution limits remain unchanged at $15,500.
- Annual limit for most defined contribution plans increases to $46,000 from $45,000.
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Jan 14, 2008 | Read more in Taxes
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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?
So I guess making $32,551 would be a real bummer.
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.
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!
Refund anticipation loans charge a fee, not a percentage. It’s not interest and doesn’t matter how long it takes the gov’t to give H&R Block the $.
@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…
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?
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?
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?
Heather: That depends on your state.
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?
By now you probably know – if your wife files separately and itemizes, you have to itemize as well.
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!!
Im not sure but I don’t believe you would have to pay any federal taxes. Each child provides a $1000 EIC deduction. That is, $1000 deductions. So 3 kids *$1000 = $3000 in deductions. I believe you should have a full federal refund. As for state, that varies state to state.
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.
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 $174k, you’re over and thus get nothing regardless of the math.
THANKX SO MUCH HEATHER ENJOY YOUR WEEKEND!
I am married and I made around 29k aftrer my 401k the wife around 10k. What is the bonus refund I will get.
and why do I keep hearing 800$
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 ?
Only 1 person may claim the child and therefore get the credit. I personally know someone who tried to get the $300 for their child who had been claimed by the other parent and almost got nothing at all for the mistake.
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.
I only made 18,826 for 2007, I have 2 children and will file head of household
will I qualify for earned income credit?
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!
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?
I’m in the same problem as you are and I don’t know what to do to get my portion back. I’m stuck right now, and I don’t know what am I suppose to do. Can you help?
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?
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
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?
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
What an awfully parasitic thing to say, you’re the parasite! Those people earning less than you qualify for earned income BECAUSE THEY DID EARN THEIR MONEY!
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Amen, Brotha.
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.
I MADE 3620.02 I HAVE 2 DEPENDENT WILL I GET A REFUND AND HOW MUCH
What is the most each spouse can make in 2008 to be in the 15% bracket if married and filing jointly? 25% bracket?
Adri: Brackets available here.
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?
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
i dont understand this.
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.
Annie: It’s Federal.
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.
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
You are taxed based on your income however you are limited to $15,500 in 401 contributions no matter what you make? This dollar amount should be tiered in a fashion that taxes are paid. You should be allowed to contribute more to your 401K if you make a higher wage.
I filled my return jointy with my wife and a kid.Total income for the year 2007 was less than 20000 $.
my dependents doesnt have ssn rather they have TIN.
I didnot recieved any tax rebates at all where as i was hoping to get atleast for me .
But i havnt been send any dorect deposit/neither any paper cheque.
Can some body let me know what went wrong that i did not receive any thing at all.
I have a QDRO which I am going to take a percentage (may be 100,000) to pay off debt and possibly lower my mortgage payment. What I was wondering is if I have an income of 69000 before taxes, and a deduction of 22,000 per year in college expenses, for two, and I am Head of household, and owe a mortgage of 2800 per month @6.5. What is the maximum amount I can take in a cash, including my income of 6900, and deductions, can I take with out being in the %33 tax bracket?
I recently took a job making $100,000 and my taxes are $400 dollars a week. That only leaves me with around 1,500 a week. That is really pitiful that I pay more taxes in a week than most people make. What actions should i take to lower that rate. My wife owes on a student loan also so no matter what I put in I won’t get back anything.
vlw: if you’re paying more in taxes per week than “some” people make in a week…why are you complaining about “only” having 1500 per week net?
BUT….If you insist, max out your 401k/403b 15,500 per year max, (only 10 weeks worth of your pay, have 42 weeks left to spend) and then open a roth IRA, also you should consider opening a 529 educational savings account for yourself, AND your wife…it can be transferred to your children without penalty. Make sure your wifes school loan is being tax deducted….but most likely you make too much money to have it count as a deduction…if thats the case…pay the loan off. FYI: private school loans are NOT forgivable if you file bankruptcy. Cut back on all the toys, purchase some rental or 2nd house,(assuming you have a house already) interest on the second house is tax deductable as well.
KAPPEL:
My income is over 100k a year, i cant invest in such IRA’s as roths. do your research. thats the point, not only do we get taxed a higher percent, but we arent allowed to participate in these tax shielded long term investments. This means you get to pay less while we still have to pay the same amount. Also, think about it, the more taxes are raised, the more pepole with money find ways to avioid paying them, moving accounts out of the US, conducting business outsdie the us. ect. This only lowres the moneys brought in by the governmtn, LOOK AT THE GATES FOUNDATION. use ur brain, grow up, and realize stealing from the rich and giving to the poor still makes you a thief.
Jim ~
My husband has just been offered a salaried position of which he is excited yet somewhat reluctant about. The increase in salary would put us “over the edge,” so to speak, into the 25% tax bracket. His position probably doesn’t have much more room for increased income. We are not currently in a position to owe significantly more tax. In addition, we are quickly loosing our child deduction as they are becoming “independent.” Advice?
I am confused on the long term capital gains and how much it would be taxed. I have held the stock about 3 years and was thinking about selling it. My other finanances are like this. I will make about 19,000 this year plus about 1,200 in interest from my savings account. I was wanting to sell my stock and the capital gains would be about 18,000 thousand dollars. I was reading where if u where making less than 32,551 u would be taxed at the lower rate which i have heard would be 0% until 2010. My understanding is this is a new law that will only be good for those years. So my question is if my total income is more than the 32,551 would i be taxed at the higher tax rate or lower tax rate or combination of both. Also that is my gross income and not my taxable income . So how do I figure this.
Ann – read above. The increase in the tax bracket will ONLY APPLY TO WHAT YOU MAKE OVER THE LOWER LIMIT. Say I made $35,000. $32,550 will be taxed at 15%, the rest (35k – 32550 = $2,450) is taxed at 25%. So the total taxes will be 32550 x 0.15 + 2450 x 0.25 = $5495 or 15.7%.
vlw – I find it pathetic you’re complaining about having $1,500/week to live on. You do realize how lucky are you are, right? No, of course not.
Sean – actually, a person making $35,000 would only pay 10% on the first $8025, 15% on the next $24525 and 25% on anything over $32550. The total taxes would be 8025 x 0.10 + 24525 x 0.15 + 2450 x 0.25 = 5093.75 or 14.5%
i made $27,500 so far this year what is my paid in tax for that amount??
My husband has made 35.000 this year so far. I am not working. He has been offered a Buyout for 114.000 that he can take a couple of different ways. He will be taking it as he is in a declining business. If we take 40.000 of the buyout this year does this put him with income in the 25% bracket? this is what I had figured and then the other payment of 64.000 in Jan would also get taxed at 25% am I correct in my thinking here I am trying to avoid the 28% tax bracket. And I live in Michigan does anyone know my percent here. Thanks
The tax code sux. 15% flat with no deductions, that would eliminate the need for almost the entire IRS…yeaaaaaaaaaaaaa
My husband’s taxable income is $323,245. We are now empty-nesters and I have decided to take a part-time job with maximum earning potential of about $15000.
My husband has shared that it will not be worth-it for me to work . . . that it would put him in a higher tax bracket . . .
But, the tax bracket tables seem to speak otherwise . . . also, gas and clothing costs are negligible.
Currently a couple filing jointly with your husband making 323,245 you would be in the 33% tax bracket. The next break for married couples filing jointly is 357,700, or 35%. Since your husband has taxable income of 323,245, you will still be 34,455 under the next bracket which is 35%. Even if you went over the 357,000, you would only be in the 35% bracket for those dollars over 357,000. I am only a lay person and you need to talk with an accountant.
This is a good question, if you are going to enjoy the work, I would not consider the tax at all. The tax Uncle Sum is going to charge is not important at all.
The more important you need to realize is to make sure you not only enjoy the work, but also do not skip the house work, you are doing every day. Also make sure no matter how much money you are going to make, you must put together with your husband, you can not keep your self.
If I’m not mistaken your husband’s bracket, rather filing jointly or single, is 33%. I would suggest filing seperately. This way your income is taxed 15% rather than 33%. That’s a $2,700 savings on your $15,000.
Wondering… sometimes it’s not about the money right? Sometimes it’s about having something to do.
I am 100 % with you
Ryan, I almost agree with your tax proposition, but suggest a couple of minor changes:
1: NO tax on the first $20K earned (Tax relief for the working poor)
2: Tax all income above this at 15%
Our tax system is SUPPOSED to be a source of revenue for the Federal Government to provide “only those services that the local and State governments cannot provide” such as Interstates, etc.
Why, then, is this used as a welfare system? Those that do not pay into the tax system get Credits and HUGE refunds.
I get a tax ex for having two kids and being poor! I pay taxes just like everyone else does. Last year I did a program called welfare to work where they took extra money out of my check each week towards medicare and all that mumbo but I didnt get as much back at the end of the year.
can anyone give me an IRS referance code or tell me where it says that our income is legal to be taxed by the IRS. Back in 1913 the gov proposed the law to make it legal to tax everyone income and it was denied and again in1953. Please someone show me with a factual comment back and add your IRS referance. People have challenged in court this illegal taxation by the IRS and have one and those people do not pay taxes on their income. One of persons is a pilot for an airline.
Thanks in advance
See irs website below for brief history of taxsation.
http://www.irs.gov/irs/article/0,,id=149200,00.html
U.S. Code Title 26
Yes, it exists. No, people cannot get away without paying taxes. If they aren’t paying them it’s only because there are a bunch of messy IRS issues and they don’t have the manpower to audit every single person. Being able to live in the US without being taxed is more of a lottery pick due to lack of manpower to investigate every case rather than a civil disobedience miracle.
However, the problem that most people relate this claim to is that it is technically unconstitutional. From a legislative and executive perspective, this isn’t much of an issue. The supreme court hasn’t heard a case that challenges the constitutionality of income tax because if nobody had to pay, the entire government would freeze up and the United States would be thrown into a completely fractured collection of states. I’m not sure of many judges that would even want to hear that case.
The 16th Amendment to the Constitution states:
“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”
It was ratified by 36 out of 48 states and was put into effect 02/13/1913.
I make 61K and my wife makes $250K.
Should I quit work and be a house husband or what are the ways of legally avoiding more taxes to pay.
I hate to see that I work for nothing and my paycheck goes to taxes at year end.
David,
Every dollar you earn gives you more money at the end of the day. Yes…. you will be taxed at a higher tax bracket at the end of the year but you can shelter 15.5k in your 401k. Be thankful that your wife makes so much money.
@wondering:
Your husband is incorrect, at least for the 2008 tax brackets. Your income won’t bump the two of you into a higher bracket based on the numbers presented.
Surely making that kind of money you guys have a tax accountant right? Ask him or her. You guys should be sheltering as much money as you can, assuming your lifestyle would permit it. Your husband should be fully funding his 401K, and if you’re empty-nesters, he’s likely close enough to retirement to be eligible for “catch up” contributions as well, letting you shelter up to half your income or near it by putting it in the 401K. Beyond that you should have a fully funded traditional IRA sinc eyou haven’t been eligible for a 401K while not working & your proposed job’s max salary would about cover funding that. Beyond that if you plan on helping w/ grandkids’ (or current kids’) college costs, you can contribute to a 529 college savings plan. All of these things (401K/403B, Traditional IRA and 529 College Savings plans) are built to reduce your tax liability and encourage savings.
At your age & income level, your CPA or tax guy should be able to figure out how to shelter at least 50-75% of your gross pay by using these methods. Of course that means that you’d have to be able to live on what’s left. Can’t shelter it and spend it at the same time, with the exception of the 529 plans in case you currently have kids in college
Love it!!! The more you make, the more you can shelter. It’s us poor suckers making $150k that can’t afford a tax accountant and are paying taxes out our you-know-what.
Sheltering is another way to say cheating. Why don’t we all just pay our own fair share?
Poor Sucker making $150,000…I have been in the Marine Corps for eleven years as an electrical engineer and don’t make a third of that…quite crying.
get out and get a real job
Quit picking on the military folk when you don’t have the guts to have ever served one term. People are more scared of what they don’t know or understand. Try telling some of the people who I have recruited after going to college for 4 years and earning a bachelor’s degree, and can’t find a job because mommy and daddy told them that college was the only they could do to have a successful life. Thanks Jennifer for the military support for my fellow brothers and sisters in arms, no matter what branch.
Terry Bryant, you should be ashamed of what you replied. It’s obvious your parents should have done a better job in teaching you manners!
Bill,
Thanks for your dedicated service. Don’t listen to Terry B. to get out and get a real job. You may be tempted to get a real job, but look at all those other people who thought they had a cushy job for life and are now unemployed! I retired after 30 yrs in the USAF. There were many times I considered getting a real job, Boy, am I glad I stayed in! Believe it or not, it gets better after 20!
I think ALL military should make way more money. Anyone who thinks different needs to join up for a bout a week or two, you’ll change your attitude
Whoever mentioned the 0% Long Term Capital Gains for 2008, 2009 and 2010 was correct. However, there is a complicated method for computing this, so I would suggest Googling the topic and a worksheet will pop up. One thing that will reduce the amount taxed at the 0% rate is if you have a loss for these years. So the object is to only sell stocks that have a profit. Sorry I can’t post a link to where you can get this worksheet.
Can i take out a527 for each of my six grandchildren max each at 2500 Will my tax deduction be only 2500 or15000 2500×6
Back in 1996 tax advisor told me not to convert my IRA to a Roth. !!!!! I’m requirred to take my RD (each yr the % goes up) add it to my income and taxed at standard rate…At what point would it make sence to convert my IRA to aRoth ????
my husband and i just got married in April. Last year he made 57,000 because he started a new job in April of last year and they withheld. He recieved 10,430 refund. Now He has made 69,000 already and have paid federal taxes of 19,000+. At the end of the year it will be 20,000 or more. I am a student and doesn’t work. Will he get a refund next year?
Even without any deductions your husband should still receive a refund. He will be in the 25% bracket which means he should be taxed about $18750 if he makes $75000 for the year. So you could still expect a return but nowhere near as much as last year.
My husband and I just finished our masters this year and for the first time in 11 years are actually making money to live off of. Together we made $150,000 in 2008, but we cashed in our IRA (15,000) and our mutual fund (7,000) for a downpayment on a house. I just found out we make too much for childcare credit and hope lifetime credit! I think I will end up paying thousands out of pocket on taxes and am scared.
We sold our house in 2006 and closed June 27th and we just purchased and closed june 10th fo this year. Does that count for 2 years for our IRA/Mutual fund (to decrease penalties)? How do you claim IRA or mutual funds? Are they capital gains, dividends…I should have gone to school and become a tax attorney!
Amy
Welcome to the Republican Party! Sucks doesn’t it? Paying all this money in taxes after working your butt off studying and struggling just to fork it over when you finally start making it, to the lazy people not willing to sacrifice their party time or TV time so they can get ahead too?
Try not to blame any particular political party. Both parties have their financial faults. But think about this for a minute. Someone who is making $150,000 to be able to live off of? Instead of blaming losing money on the lazy people, which I am in totally agreement that it is BS that they won’t work as well, but look at the people complaining about paying taxes when they have a $500,000 to $1.5 million dollar homes, drive expensive cars, only feel that private school are the only way a child will get a decent education, and paying someone else to watch their kids when it is not necessary. Yes, different areas of the country have higher costs of living so I am factoring in that as well. But don’t complain that it is so hard to live off $150,000 when I am married, have 2 children, been in the military for 7 1/2 years and am living very comfortably making $60,000 myself and my wife doesn’t even work and is going to school to finish her BA.
This must be the website for the semi-wealthy. Are you people joking? I was married last year and I’ve worked my butt off everyday for the last 17 years. We pay our bills and take care of our kids. And we’re taxed just like everyone else. Don’t act so great because you make more than little people like us. When my refund comes, I pay my bills. How the hell does that make me lazy? Please explain to me how working 40+ hours a week for 17 years makes me lazy?!!
It is so nice to see all you folksy “Joe the Plummer” types getting information about those nasty taxes the democrats want to raise. You know, so they can take your money and give it to someone else. It gives me such a nice down home warm feeling to see people helping each other out.
Our tax plan will make it so John Mccain and other average folks like him and you won’t have to pay so much in taxes. How many people that own 7 houses can afford to pay more taxes? Not John McCain, that’s for sure. We’re going to make sure the John McCains and Joes the Plumbers can have more of their own money. You see since the rich people make so much money, if we cut their taxes they can buy more stuff and then there will be more money in the economy and you all will make more money. Now wouldn’t that be wonderful. They could just pay people more but then they wouldn’t have as much fun with their money.
Thanks to all of you for your support. If you want to give us a donation since we’re gonna lower your taxes, it’ll help in the fight to beat “that one” in the next election in just a few days folks.
Now get out there and vote and lets get the first hockey mom in the WhiteHouse. We’ll ban that “gotcha” journalism, keep the bad books out of the libraries and put god first.
You are an idiot. A boring night at the trailer park, dearie???
I don’t think there has been one answer to a question asked on this board.
YES, sarah palin. i worship anything you say because i hate abortion and want to see a woman vice president.
It is unfortunate that in your eagerness to see a woman as vice-president that you are not concerned about her ability to fulfill the duties, her knowledge (lack of about world matters and the VP responsibilities), or her ability to step in and be president if necessary. Just a few months ago she said that she would not be interested in running for VP until someone can tell her what the VP does. And, she still doesn’t know as is evident in the interviews when they ask her.
If you ever get some additional mental energy or cognitive ability think about what you are saying. It is fine to like her as a person, but she would be clueless as VP or President.
Moreover, it is ironic that she advocates abstinence only sex-ed and her unwed teenage daughter is pregnant. How pathetic; she can’t manage her own children and wants to talk to the country about sex education. Why didn’t her daughter abstain if its so effective and right? The list of her weaknesses goes on and on. No one is perfect but she is so far out of her league on this one, it is just a joke at this point. Voting for someone b/c she is a woman or b/c she seems like a maverick- is just a joke. We can’t afford anymore experiments at the Executive level.
You are a hypocrite and judgmental. Check all your facts. Your President elect was televised saying he was not considering the Presidency as he did not believe in taking a position he was not trained for. So this is the biggest experiment being played out in Wash. That’s the “head” guy you have instead of a VP that at least had some degree of leadership in Government. And the worst is bringing her daughter into the mix. Obviously you have not had any teenagers. Just because you tell them things doesn’t mean they listen. Chastity belts are out you know. I raised 5 kids and as teens I worried everyday of what “mistakes” they might make and prayed they had paid attention to me. So stop blaming Palin as a mother because she had a teen who thought she knew more. Praise the daughter and the mother for accepting the responsibility of raising that child. I was an unwed mother at 19 and believe me it had nothing to do with my parents.
Kelly – 16th Amendement of the US Constitution
I am married, we have a combined income of give or take $80 k. We unfortunately don’t have any kids. Would if we could. We claim “0″ and pay extra throughout the year, then we still have to pay in. This doesn’t seem right. We are also always just about 1k short of being able to itemize with our many doctor expenses. Is there anything we could be doing differently here in missouri? We are also still paying college loans and c.c. expenses, along with some terrible doctor bills for various reasons, so times have been really tough.
Buy a house. Use the interest deduction to be able to itemize. There is no reason that you claim zero and have to pay in. Whomever does your taxes, may not be doing them correctly.
Make sure you claim those high medical bills. I know they always ask us if we have any large medical expenses. Also make sure you’re claiming the interest paid on those college loans, they aren’t taxed, and you should have a statement saying how much you paid for the year. That can save you a lot of money.
I receive $100K annually in rent (triple net, 20 year lease) from a building I own in CA. The rent is paid monthly. There is no debt on the building and there is a annual escalation clause tied to the CPI. I also receive 35K annually in SS payments. My deductions come to about $30K each year. Those two income sources make up my taxable income. I am domiciled in FL.
Would I have more after-tax income if I sold the building and used the proceeds to purchase a tax free municipal bond fund, say, FKTIX, currently yielding 4.89% and is AMT free? I would have the dividends from the fund paid to me monthly and not have them re-invested. I do not anticipate the need to ever sell the bond fund. I currently own shares in FKTIX and in OPITX from which I also derive monthly essentially tax free income and I don’t anticipate the need to ever sell these funds either..
It depends on the net amount received from the sale of the property minus your original cost. Then you will have to pay taxes on the gain. Unless it is worth more then 1750000, I would not worry about it.
I took a new job in a new city with a new company in 1985. I asked that I be paid on a commission only basis what I sold I got paid for, period! (I was 1 of 3 people that started the company). We were wildly successful and my income beyond my dreams. I commented about the taxes to one of the partners. I will always remember his answer…. The more taxes you pay the more that you have earned… Consider it a report card on your success.
I have never complained about my taxes since as he was and still is absolutely right. We all want good roads, nice parks, police and fire protection, and on and on. If you are hungry you pay for food, if you want services provided by the government, those too, you must pay for.
gary i dont think most people would complain about paying taxes if they ever figured out a way to budget the money correctly,i also work for myself and pay alot in taxes, but every time you turn the news on they need more money, the national debt is getting bigger, we aren’t gonna have social security in 10 years so on and so on you get the picture. i just want some accountability if all balanced are check books like congress does we would all be out of business?? we need accountabilty one source balances every thing 2 years of screwing it up your out. at some time there will be a breaking point america needs to wake up all this zero down no intrest no payments for two years crap is catching up with us the only thing people should finance is houses and cars if you cant save up for it within a year then you dont need or just cant afford that flat screen television or whatever it is.?!
We live in Florida. For 2008 has it been decided whether you can deduct your sales tax on your income tax?
Also is the state sales tax you pay for gasoline also deductible or not deductible?
If you can answer these questions, can you send me to the site that verifies the information?
Thanks
Brenda
I have 221 K in my traditional IRA & would like to withdraw it all, what tax would I be paying, I am sixty years old & retired, my husband made 60 K this year, we file taxes jointly?
Thank you for your advice
so…i guess im really confused! I’m just trying to find out what the amount a single person is allowed to make is without going into the next tax bracket. i don’t really get into all this percentage stuff! i just need to know a number
your question doesn’t make much sense, if you look at the table above it tells you how much a single person can make and what the percentage you will pay on that income. If you’re asking how much is let’s say 15% of 20,000 you can calculate this with a basic calculator which you may purchase at your local walmart it sounds like you frequent this store very often.
Be nice. Not everyone’s a math wiz. Lol.
Do you figure out your tax bracket by your gross wages? Or is it your gross wages minus your deductions, then you use THAT number to figure out your tax bracket? Someone please help me!
You use your net income, after taking deductions from your gross income. This net income is then taxed marginally according to the tax bracket above. For example:
If you made $200,000 in income, interest payments, dividends, etc and had $50,000 in deductions, you would have $150,000 in taxable income. This would then be taxed at the appropriate rates, as follows:
10% Bracket = First $8025 or earnings = $803
15% Bracket = Next $24525 (32550-8025) = $3679
25% Bracket = Next $46300 (78850-32550) = $11575
28% Bracket = Next 71150 (150000-78850) = $19922
Total taxes paid = $35978 = 24% of Net Income
i have a question if i made @8000 for the year and i have a child that i am claiming how much do you think that ill get back? i live in massachusetts
if i make less then 3,000.00 a year and don;t have any taxes taken out of my paycheck will i get money back all so i have 3 kids
making 3000 a year how do you support those children? If someone else can claim them as dependents based on that, it will make a difference in your taxes. As far as getting money back, I think the only thing available to non-taxpayers is if they didn’t get the stimulus check they were entitled to this past year.
make 3k, and have 3 kids? You should have kept your legs closed!
guess who is paying for her 3kids and this deadbeat oh yeah you and me and she wants to get money back when she never paid anything to IRS. Must be nice
So sad to see so many ignorant American citizens beleiving that they are required to pay over the federal income tax. The Internal Revenue Code is so plain. Of course no one for the most part has access to the Code and if they did they would not know what to look for or where. Subtitle “A” is the only subtitle consisting of 1,563 code sections on income taxes. At section 1,461, you can read who is “LIABLE” for the tax. It is a government agent collecting the tax from either a nonresident alien or foreign corporation. Nowhere else in the entire Code can there be found one section requiring anyone other than a federal employer or federal employee, required to pay the federal income tax. Just look at the three words. FEDERAL INCOME TAX. The tax is on federal income. Income is a legal term for federal tax purposes. Income has been defined in several US Supreme Court tax decisions that income is the result of government granted privilege activity, and this activity is in wages paid out to the federal employee and some of that income must be “RETURNED” to the Government, thus the “RETURN’, a form of kickback. American citizens and corporations operating outside of the United States jurisdiction have no tax liabilty whatsoever. Why pay the tax even if you want to pay voluntarily? First of all, you will be committing a felony, because you will be falsely admittting to having federal income while you do not, so don’t commit perjury. If you file and should make a mistake, even if it’s a honest mistake, the IRS may think you were trying to evade some of the tax and they may prosecute you criminally. Just say NO to the federal tax and when you get that letter from the IRS why you did not file a 1040 statement (not a return), just tell them you are no longer going to lie and admit to having something you do not and besides you cannot be absolutely sure that everything is true and correct to the best of your belief and knowledge. The buck stops here. Bye bye IRS and hello pocket full of my hard earned money!
IN 1945 FDR STARTED SOC. SEC. WITCH STATED NO TAXES ON SOC, SEC, ALL PUT IN SPECIAL TRUST FUND FOR SOC.SEC, ONLY. CONGRESS IM THERE STUPID WISDOM MADE TRUST INTO GENERAL FUND, & EVERY STARTED TO TAKE MONEY FOR EARMARKS, & BEST OF ALL BILL CLINTON SIGNED A LAW TO TAX SOC, SEC, 85% , THAT JACK ASS DOSEN’T PAY SOC. SEC. THATS THE STUPIDEST THING I EVER HEARD OFF. IF THAY WOULD HAVE LEFT IT ALONE THERE WOULD BE PLENTY ON MONEY IN SPECIAL FUND FOR , LEAVE IT TO CONGRESS TO F— UP EVERY THING.
It should be a Flat Tax 10% Federal 5% Social Security and Medicare Tax, 5% State Tax – mandatory payroll deduction, employers responsibility to deduct from payroll for everyone. That will relieve IRS and State Tax personnel, to focus on collections, rather than waste their time auditing returns.
If you want to talk discrimination, singles being in a higher tax bracket just because they are single is the biggest form of discrimination. No one will take it up as a cause because singles are a minority.
Nothing is reduced for the sake of singles. Singles pay the same mortgage payments and car payments as anyone else. Nothing is lowered just because of single status.
Buying groceries for singles is a joke. If one buys in smaller quanities, they pay more.
Singles expenses are just as much as any other person. Singles should not be discriminated against by being put in a higher tax bracket.
I don’t understand, married couples are punished for being married because the brackets are double the rates of singles. Singles aren’t being discriminated against, married couples are. (from a tax perspective)
Jim, your an idiot. No offense. The dollar ammounts of the tax brackets are higher when married. This means a married couple can make more money than a single person and still be taxed the same percent. Example: A single person making $40,000 gets taxed 25% where as a couple making $40,000 gets taxed only 15%.
To LRudy, this is because married couples have more expenses so a single person in the situation above needs less of the $ than a married couple. That’s why their taxes are cheaper.
My boyfriend and I are planning to get married – honestly just didn’t get around to it and are wondering if it is beneficial to step it up and do it before Jan 1. He has no deductions and makes $95k; I made roughly $48k and have a 17 year old and mortgage interest of $16k and line of credit interest of $3800 YTD. If I am correct, he will remain in the 28% tax bracket either way; currently I am in the 25% bracket. Can anyone help – will it make that much difference if we marry and file joint or remain single for the rest of this year. He is claiming single, 0 deductions. I have paid roughly $3700 in federal tax. If I’m reading paystub correctly I am claiming single 6 deductions for federal and single 4 deductions for state. Thanks for your help all!!!
I’m not a tax expert so I don’t know… call up an accountant. It’s really just your income and your deductions that matter.
When married you are not required to file jointly. You can each still file seperately. The idea of filing jointly is that for a good number of couples, the tax bracket might be lowered. As an example a single filer pays 25% on $40k where as if he filed as married would pay only 15% assuming the wife doesn’t work.
Does anyone know why the IRS set the following the tax rate from 10% ->15%-> 25%->28%->33%->35%?
A 10% increase from 15% to 25%, really hurts the net earning. Generally, college students with a bachelor degree would earn income between $33,950 to $82,250. Even if you max out your 401K contribution, you still have to pay 25% on the remaining amount. This tax rate truly puts the poor people away from middle class. It appears as it is a penalty for an average person who try to make its way up. Why can’t there be a tax bracket of 20% added between 15% to 25%?
BTW, the gross earning is taken out by around 30% for ALL taxes (fed, state, social, etc)?
Tax is our dutie to pay for a better government and society. However, it should be a fair practice.
WHAT HAPPENED TO THE CHART FOR THOSE WHO ARE 65 AND OLDER , NO CHART IN 2008 TAX BOOKLET,CHART WAS IN 2007 TAX BOOKLET,$12,800.00, DID I MISS SOMETHING?????
tax tablefor over 65
Curious if anyone can answer this for me. I got married this year, in May. My husband has a tax lien from a few years ago and I have 3 children. I have always gotten a large tax return with earned income credit, and now I need to know if we have to file a joint return which I think will put us in too high of a category for earned income credit ($60k total between us), or if there is a loophole for me to file my own return since for half the year we weren’t married? Married filing separately doesn’t let you qualify for earned income credit for some reason. Help please or we won’t see any return this year!
Marriage status is determined by whatever your marriage status was on 12/31/07. If you were married on 12/31, then your status is married. If you were single on 12/31, then your status is single.
My husband just qualified for SS Disability. It was paid in 1 lump sum for the 4 year period that he waited with all the appeals, etc. The tax info he got has the amount of each year that he earned individually. Can we pay this in back taxes, so our income this year won’t be so much?
It must be nice to be able to complain about making 150k a year, wow this year me and my husband have been fortunate enough to make 15,000 between the two of us. we have two kids and have to scrimp every day. The job market sucks and there is nothing we can do but suck it up and watch the rich get richer. We are both high school graduates with a bad string of luck. For all you fortunate, remember that there are people like my family out here that have to choose between electric and mortgage every month.
Andi, I know exactly where you are coming from. I feel for you. 5 Years ago I had a good job and 3 days before my son was born I got laid off, for 3.5 years I worked 2 Part time jobs because no one was hiring full time. A year and a half ago a good job opened up at a local College and I got it. Keep looking there is something out there for you and it will be there when you least expect it. I probably will never earn 150k a year but that’s ok I have a beautiful wife and 2 healthy beautiful children. Your bad string of luck will stop. Best wishes to you and your family!
Andi I understand also. Wife was laid off from a part-time job and together we made $30,000. s last year. I changed jobs 1yr4mo ago and my pay alone now 2008 was $31,000. driving a city bus.
All those making $150,000. and more good job. There are many more trying to hang in there.
We will see if there is trickle down money.
I am a father, single parent, filing HOH, and making $108k/yr. I want to know where I stand if I get a second job in the coming months to eliminate a credit card I have. I heard that I can’t be HOH if I take a second job. How will that effect my return in 2009? Also, how much can I earn before I find myself in a higher tax bracket? Thanks in advance for your time.
That’s crazy. Someone needs to be the head of household. There’s no logical reason that 2 jobs or even more would change that. According to this year you can make up to $131,450 before being bumped to the next bracket, though that number ought to be higher next year.
Does anybody has an idea where I can find the list of all possible deductions for a married couple filing jointly?
Julio
Maybe try searching google? But anyway guys, this up to 35% income tax is dreadful. All said and done, making 100k turns out being a lot less after income tax. I don’t have a job, I’m just talking about people who do.
God, 33% out of 100,000? That amounts to about 66,000. Did you forget bills? Electric, Water, Insurance, Auto, Medical, Credit Card, yearly tax…. Oh and subtract all the money you spend each year on going shopping.
Its sad that even if you get a payraise, the taxed income will just end up near what it was before.
Ok guys let me give you a good one…. I have a friend or I think ex-friend by now. He is a cop, has a wife and two kids. He will not work any overtime. He does this for a reason. He then will qualify for his kids to get the state vouchers to go to private school for free! It also qualifies his kids for a state insurance called Healthy Kids and what that doesn’t cover then he can go apply for what is called a temporary medicaid to pick up the rest of the bill if there is some health need and large bill. He could get insurance through his job for his entire family but he gets free insuance for himself at work and his kids get this $15 a month insurance. His wife is not covered at all lol. And I might add she does not go to the doctor lol. Okay and if that isn’t bad enough… his wife got WIC (which is a gov thing to get free foods for your children (and baby formula) until they are 5 years of age) …. okay well they road that horse until their kids were too old. Ok then… he works side jobs and has it worked out with a friend that if he gets caught he is to say he is working for him under his license ID number. These jobs are CASH jobs only… so no taxes are paid on that. He has a house and a large chunk of land where he lives. He and his wife have new vehicles. He goes on hunting trips with friends each year in state and out of state(NOT CHEAP). They get back a nice income tax return every year (between 4 and 5 thousand a year)!!!! AND TO REALLY GET YOUR ATTENTION … If they think their income is going to be over the limit to get state vouchers to send their kids to private school for FREE then they put more of his check from his cop job in retirement!!!!!!! GO FIGURE GET REWARDED FOR PUTTING MORE MONEY AWAY FOR RETIRMENT. Really pizzez me off when people get by with this crap! My husband works his butt off and has no money put away and my kid can’t get a free voucher for school because my husband makes too much LMAO! So you see they have got it all figured out and they get by with it! Then his wife will say ohhhh we are having such a hard time making ends meet. We have to put more money away in retirement so our kids get a good Christian private school education (FREE), LMAO.
Good for them. Policy makers in Washington have made me lose all faith in our government. We live in a society now that you really can’t rust anyone. Government, Insurance, heck every company you deal with is in your pocket with no shame. I took a distribution on a 401K account in order to house my wife, 18 month old, and 6 month old. I am floored by the taxation on it, although I was expecting it. I’m in sales and that put me in a tax bracket that greatly accelerated my taxes, not to mention the 10% penalty. I am now committing myself to finding every way possible not to pay taxes…legally. The way I see it, I’ve paid enough, and it just gets squandered. Notice I said legally through use of deductions. Heck, If I just didn’t pay my taxes at all, I have a better than average chance of becoming a Presidential Staff appointee. Wouldn’t that be great. No one is on our side…no one. Every lobby in Washington is set up some how to get into your pocket. No one advocates for us, No one. To the guy who wants to get a second job to pay a credit card…do this: Get a book on tax law. Legally find and exploit every loop hole you can…make that your job and have fun doing it. When Nancy Pelosi can sit in front of everyone and say with a straight face that condoms needs to be provided in this 800 billion dollar bailout mistake…that’ when I’m out. People say that we are responsible for our part of the national debt…not me I didn’t okay any of this bs. I didn’t sign off on it. So I am going to study how to eliminate my participation in it. I’ll donate to our troops via USO or something (wow another tax deduction!!)
My son is taking on his first job. He anticipates making about $5,000 in 2009. Should he claim Exempt on his W4 because he won’t owe any Federal taxes in 2009? Doesn’t the $3,500 personal exemption mean that his first $3,500 in taxes are waived?
Hello everyone, i have some issues, first of all, ive been married 9yrs, during this 9 yrs be and my husband have only lived under the same roof, for about 2 yrs, we have remained married tryin to work through things, and we always end up getting back together, and then a month or two we are living apart again, i have only worked maybe 2 jobs for a very short period of time and didnt make very much maybe total of 3400.00 each time which were different years, and so since we had two children together, and ive had some issues, our children have remained in the home with there father, who has filed head of household evvery year, well last yr, i ended up getting pregant, and we tried working things out again, and have moved into the same home together to see if it will finally work out since we are both so much older and now have three kids, my ? is since my husband filed head of house all those years, and i never filed on when i worked, because i was told you had to make 5000.00 or more a year, this year he filled married filling seperartly since we are living together now, will they audit him? and me for not filling on the time i worked? thank you so much and god bless
I’m confused on my taxes. I have 2 jobs and when I enter my W-2 info for my first job it says i get a refund of around $1,200. Then I enter my second W-2 and my refund gets cut in half. I don’t think I changed tax brackets this year and I don’t know what to do. Any help would be awesome.
I have just had a hopefully temporary pay cut that has put me in the 15% tax bracket. If I can still make ends meet would I be stupid to get a part time job that would throw me back into the 25% tax bracket?
That’s not how tax brackets work. You should really research marginal/effective tax rates. Besides that, income tax is not 100%. Why would you not want more income?
saladdin
Probably not Bailey.
Here is how it works… You are taxed based on your adjusted gross income (meaning after all deductions). Say you max out at $32551 last year which puts you $1 into the 25% bracket. You would then pay 10% on the first $8025 (so $802.5) then 15% on the next $24,525 [$32550-$8025 = $24,525) (so $3,678.75), and finally 25% on the last $1. So it isn’t bad to reach the next tax bracket in this scenario.
This would be a problem in certain cases, such as IRA distributions where you are taxed at your highest marginal rate (25%) for the full amount of the distribution… and these distributions can raise your rates.
Various politicians think that playing with our money will get us where we need to be,wrong wrong wrong.Does Anybody know history? Remember the labor movement when this country had prospered building the Panama canal,the empire state building,the railroad,etc,these acts where deliberate and everyone worked from a vision. Right now the only politician whith one would be the President.Correcting the info structure is a big start.Without a vision of where we are going to the future these corrections to our bridges,roads,and tunnels will be the waste of another generation. Mr President,citizens of the US there is only one way we wre going to come out of this.National Monorail System System.Clean,fast,dependable,and plenty of work for all.
this year i just made some good money aroun150000. we are filing jointly and i have a year old kid. how do i save taxes? please advice
My husband annual income is about 14000$ plus he got little store that has income 8500$ how can i check what is a max income for him if i dont work and he claims me?
My mom, who is retired and living in Utah, took out a $20,000 Reverse Mortgage on her home. Does she have to pay any Federal or State Taxes on that? Her income consists of Social Security and my Fathers Military Pension (I think). Thanks, I appreciate any info that I could get.