| Itemized Deductions remain virtually unchanged such | | | | deduction", qualified teachers may deduct up to $250 |
| as mortgage interest, state & local taxes, medical | | | | out-of-pocket expenses.o Renewed deduction option |
| costs etc. Standard Deductions however have | | | | of state & local sales taxes instead of state |
| increased with their allowable deduction amounts. | | | | & local income taxes. |
| Listed below are the Standard & Increased | | | | [Refer to the IRS table Form 1040 listing deductions, |
| amounts for 2008:o Standard deduction is $10,900 for | | | | based on household size, income & state of |
| couples filing jointly; $5,450 for single taxpayers.o | | | | residency, an allowable number will be provided. |
| Standard increased deduction for real-estate property | | | | However, if you are analytically organized enough to |
| tax is capped at $1,000 for married; $500 for single | | | | have kept all of your 2008 purchase receipts, you can |
| taxpayers.o Standard deduction addition for taxpayers | | | | deduct the amount you paid in sales tax. In addition, |
| who are at least age 65 or blind; $1,050 for each | | | | sales tax paid on various large purchases such as a |
| married individual; $1,350 for singles. | | | | car, boat, home-building materials may be deducted as |
| [These deduction advantages are ideal for the | | | | well.]o Renewed deduction of tuition & fees paid |
| taxpayer(s) which live mortgage free in a no-income | | | | for in 2008 has been extended for any college or |
| tax state. The advantage here is being able to deduct | | | | post-graduate education expense. |
| a total of $14,000 for married/ joint filers both aged 65 | | | | [Qualified higher-education costs for married couples |
| or older and had paid at least $1,000 in property tax | | | | filing jointly with incomes up to $130,000 may deduct up |
| ($10,900 + $1,000 + $2,100 = $14,000). For the single filer | | | | to $4,000. Incomes of $130,000 - $160,000 may deduct |
| the tax deduction advantage is $7,300 ($5,450 + $500 | | | | up to $2,000 only. Single taxpayers & heads of |
| + $1,350 = $7,300).]o First-time Homebuyers (if | | | | household with an income of up to $65,000 may |
| purchased after April 8, 2008; or if you purchase | | | | deduct up to $4,000. Incomes of $65,000 - $80,000 |
| before June 30, 2009 credit may be claimed for 2008 | | | | may deduct up to $2,000 only. Deductions may not be |
| amended return-if already filed) full tax credit of $7,500 | | | | applied to a Hope Scholarship or Lifetime Learning |
| for most taxpayers whether married or single filing | | | | students expenses for which a tax credit for 2008 is |
| jointly with an income up to $150,000 & partial tax | | | | currently being claimed.] |
| credit allowed up to $170,000. Full tax credit for singles | | | | This of course is only a summary of the vast number |
| given for incomes up to $75,000 & partial for up | | | | of standard, itemized, credit, & renewed |
| to $95,000. | | | | deductions being allowed this tax season. My goal is to |
| [The Catch: This credit is essentially an interest free | | | | make individuals aware of existing opportunities in |
| loan and must be repaid over 15 years. If the full tax | | | | order to help them preserve their hard-earned income |
| credit is claimed, $500 will be owed each subsequent | | | | and to Inspire Financial Wealth. Please share this |
| year for 15 years beginning in 2010. If the house is sold | | | | valuable information with whomever you feel would |
| before full repayment, the balance, limited to the gain | | | | benefit by and then you too will Inspire Financial Wealth |
| on the sale, will be due on your tax return for the year | | | | in another, as it shall then return right back to you. |
| of the sale.]o Renewed deduction "educator | | | | |