TurboTax 2008 and Tax Changes
TurboTax 2008 Online is programmed with every deduction and credit you could imagine so with this years editions your sure not to miss any opportunity to increase your refund.
Using a good preparation program like TurboTax 2008 Software is a great way to ensure your not paying more in than you have to. Another big plus is that when you use it every year, you don't have to keep filling in everything from the previous year. It imports all your data to the new years software so all you need to do is update where needed and your done, it's that easy!
Using software that can take
advantage of law changes is vital to getting you biggest refund
possible. This years changes include:
The 2008 Medicare rate remains at 1.45% of taxpayer income, and Social
Security stays at 6.2%. The wage limit, or Social Security maximum, has been
raised $4,500 to $102,000. That's an increase of 4.6% over last year's
maximum. The maximum Social Security benefit has been increased to
$2,185 per month in 2008.
Standard Deduction Amounts
All standard deductions are higher in 2008. The exact amount depends on your
filing status, whether you're 65 or older, blind, or if an exemption can be
claimed for you by another taxpayer. TurboTax
2008 insures you take advantage of any deductions you can qualify for!
Standard deduction amounts for 2008 include:
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Single - $5,450
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Married filing separately - $5,450
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Head of household - $8,000
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Married filing jointly / qualifying widow(er)s - $10,900
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Married filing separately - $5,450
Exemption Value in 2008
The exemption deduction amount you can claim on your federal income has increased to $3,500 in 2008.
Mileage Deduction Rates 2008:
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Business miles 50.5 cents per mile
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Charitable Services 14.0 cents per mile
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Medical Travel 19.0 cents per mile
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Moving Travel 19.0 cents per mile
Increase for Earned Income Credit 2008
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Maximum earned income credit for low and middle income workers and families with two or more children is $4,824 in 2008.
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Qualifying income limit for the credit for joint return filers with two or more children is $41,646 in 2008.
Lifetime Learning and Hope
Credits
Maximum Hope Credit available for the first two years of post-secondary
education is $1,800.
Contributions to Retirement Accounts
Income limits for contributions to traditional IRAs as well as Roth IRA
plans increased in 2008. Income phase-out thresholds for Roth IRAs now start
at $159,000 for those filing joint returns, and $101,000 for those filing
single or as head of household.
Deductible traditional IRA income phase-out limits start at $85,000 for
joint filers, and increases to $53,000 for single filers or head of
household.
Insuring you get the biggest refund requires the proper software. TurboTax 2008 seems to have the best rating overall, though it appears H&R Block Online comes in a close second. What's great is that today's top software brands are better than ever at making sure you find every deduction possible!
