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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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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?
Hey Fred, how do you know what Income is?
Hey Jim, please do tell where Income is defined in the IRS Code Book, you are part of the reason why so many Americans in this Country have their heads up their A.. Why is it that you and none of the Senators or Representative can answer this simple Question, Which Law makes not corporate people Liable for any Income tax?
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.
Hey Tom, you stupid sh..t, what law says that any non corporation person “have to itemise as well”? Most you dumb sh..ts on this forum are so f..ng ignorant, but well behaved sheep.
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.
SS is supposed to be insurance, would you pay tax on any insurance benefit? Which Law requires you to pay income taxes on you SS benefits? If you are a senior, you’ve been stupid long enough, wake up and wake up others.
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
Hey you stupid F..k, you have no income, name the f..ng law that says you are required to even file?
If you file jointly, this means the F..ng IRS can go after you and your wife if you do not pay the Income tax you swear you F..ng OWE!
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?
You have no income, period, you are not a corporation, for crying outloud, read your Constitution.
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
Hey, do you remember that your W-4 had the option, “EXEMPT” on it, did you mark this? No you did not. Now go back to your employer and ask to redo your w-4 and this time mark “EXEMPT”. Your employer must honor this or you can charge him with theft.
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.
You should not even file any kind of tax return. You are a poor bastard just trying to survive. Your employer should be deducting O from your checks, you do not have to volunteer to pay this illegal taxes.
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.
do you want some cheese to go with that wining
Why is this considered whining? VLW probably went to school, got an education, pays student loans, earned a job and works his butt off. Some others choose not to go to school and sit back and expect a hand-out. Is this what you are going to teach your children? If someone chooses to not better themselves while someone else does, why does the first one get to benefit off of the work of the second? Take pride in what you EARN and put your hands back in your OWN pocket.
There is no Law which requires you to pay any income tax. You are paying this taxes voluntarily. Ask you accountant to show you the Federal Law which requires you to pay Income taxes and Requires you employer to deduct it. Ask your employer. Remember the w-4 form you filled out, did you volunteer then to pay income taxes?
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.
“My income is over 100K a year”
How do you know you have income? What Law says that you as a non corporation have gains?
Only you and all the other stupid Americans who pay income taxes determined on their own that they have income.
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?
My advice? Look up marginal brackets. You really have no idea how the tax rates work.
saladdin
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.
Could you please tell me how do you know you have INCOME?
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
why dont you ask the IRS, to tell you the Law which makes this buy out Income. Tell them you cannot find the definition of INCOME in the Code. Ask them who determines what is income? After they feed you a bunch of Bull Shit, you will realize that only you can make that determination, and they will not tell you the LAW.
The tax code sux. 15% flat with no deductions, that would eliminate the need for almost the entire IRS…yeaaaaaaaaaaaaa