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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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172 Responses to “2008 Federal Income Tax Brackets: Official IRS Figures”

  1. I am a single female, age 70, my income with retirement and SS amounts to about 50,000. My tax rate is 25%. How is it fair if someone making >357, thousand pays only 10% more than I do. We should go back to the graduated tax system (before Regan) or have everyone pay the same tax rate. Those making less than 25,000 should not pay income tax. Or just get rid of the IRS and save everyone time and money.

  2. David says:

    It’ even worse than that Dee. At an income level of $50 K you also pay 6.2% S.S. which increases your tax to 31.5%. But high earners don’t pay this S.S. penalty because it is only paid up to an income of $107,000. After that income level you pay no more SS tax. So, if you have an income of say $1 million (There are 8 million millionaires in the US) You would only pay .6% SS tax (point 6%)So his/her tax rate would be 35.6% – just 4% more than you pay! If you made say $100,000 and paid tax at the 28% rate, add 6.2% for SS and you have 34.2%. Very close to our millionaires 35.6% At $50,000,000 and there are a lot of those – way too many – mostly in the banking, wall street, hedge fund, etc crowd and it becomes 35% plus about .03% SS tax or 35.03%.
    If everyone paid SS tax`on all of their income, there would be no problem with either SS or Medicare for between 50 and 100 years. Why should Tiger Woods for example ($100 million a year! Playing golf!) not pay SS on all of his income? You and I pay it on all of our income. Problem solved.
    If the Bush tax`cuts were put back into place, debt ceiling solved. When top tax`rate under Clinton was 39% we not only did not have to borrow money we had a surplus AND were paying down the National Debt. He, Clinton, had it so that the National Debt would be paid off entirely by now!! (Even Bush knew we could not keep borrowing money to give another tax cut to the rich, he set it to expire after 10 years! And the Tea Baggers forced us to renew it. None of these problems would be here if the Bush tax cuts had been allowed to expire.) Or if he had made a provision to pay for them somehow instead of just cutting taxes to the rich and borrowing money to pay for them. And the starting two wars – and not paying for them either.

    • Clay says:

      Davis is soooo confused.

      Why would you ever desire a system that punished success and rewards failure?

      If one tax payer worked 60 hours a week to make a better income, why should we take from that person and give to the person only wants to work 20 hours a week?


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