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What The Tax Rates For 2008 ?

Note: The graduated rates below are based on TAXABLE INCOME, which is your adjusted gross income reduced by your allowable deductions (either itemized deductions or the standard deduction) and your allowable deduction for personal exemptions.

Rather than do the math required for the calculation of the tax from these schedules, you may find it easier to use the Tax Tables or Schedules contained in the instructions for the form you are filing.

Standard Deduction (add 3 rd column if over age 65 or blind EACH)
Married Filing Jointly and Qualifying Widow(er) $10,900 $1050
Single $5,450 $1,300
Head of Household $8,000 $1,300
Married Filing Separately $5,450 $1050

Personal exemptions for 2008 are $3,500

Note that both itemized deductions and personal exemptions are subject to phase-outs for certain high income taxpayers. Check Form 1040 instructions.

2008 TAX RATES
Married Filing Jointly and Qualifying Widow(er) $0 to $16,050 10%
  $16,051 to $65,100 15%
  $65,101 to $131,450 25%
  $131,451 to $200,300 28%
  $200,301 to $357,700 33%
  $357,701 & Over 35%
Single $0 to $8,025 10%
  $8,026 to $32,550 15%
  $32,551 to $78,850 25%
  $78,851 to $164,550 28%
  $164,551 to $357,700 33%
  $357,701 & Over 35%
Head of Household $0 to $11,450 10%
  $11,451 to $43,650 15%
  $43,651 to $112,650 25%
  $112,651 to $182,400 28%
  $182,401 to $357,700 33%
  $357,701 & Over 35%
Married Filing Separately $0 to $8,025 10%
  $8,026 to $32,550 15%
  $32,551 to $65,725 25%
  $65,726 to $100,150 28%
  $100,151 to $178,850 33%
  $178,851 & Over 35%

Tax Rate on Dividends and Capital Gains

Dividends.
 

Taxed  as a maximum rate of 15% for clients in the higher brackets and just 5% for taxpayers in the 10% and 15% brackets.  This change is retroactive to Jan. 1, 2003 and is scheduled to remain in effect through  2008, except in the year 2008 the rate falls to  zero for taxpayers in the 10% and 15% brackets.  Beginning Jan. 1, 2009, dividend taxation reverts to current law.

Capital gains.

15% for clients in the higher brackets and 5% for people in the 10% and 15% brackets.  This new rate applies for assets sold on or after May 6, 2003, and before Jan. 1, 2009.  As with dividends, the capital gains tax rate is zero in the year 2008 for people in the 10% and 15% bracket.

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Disclaimer
We do not offer legal advice. All information provided on this website is for informational purposes only and is not a substitute for proper legal advice. If you have legal questions, we recommend that you seek the advice of legal professionals.

Tax Disclaimer: To ensure compliance with IRS Rules, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer under the Internal Revenue Code, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein.

Copyright 2017 Wink Tax Services / Wink Inc.
Last modified: January 30, 2017