Plan Ahead for 2008 With Updated Tax Figures
Thursday November 29, 2007
You can get a jump start on planning your 2008 taxes with a handy list of quick tax facts. Find information on the standard deduction, personal exemption, phaseout limits, and retirement plan limits. There's also a new tax rate schedule for 2008, with wider tax brackets that means more income is taxed at lower rates.
Some highlights for the upcoming tax year:
You can contribute up to $5,000 in a traditional IRA or Roth IRA for 2008, compared to $4,000 for 2007.
The amount you can save in a 401(k) plan remains unchanged at $15,500.
The standard deduction and personal exemption amounts have increased, meaning that more of your income will be excluded from tax.
Comments
Tell me some ways to save on tax as i am 71 years old
I found great retirement information at http://www.expertretirementplanning.com. I liked the quick tax facts- thanks!
PLEASE CORRECT the first line of your statement!! We arer WAY past getting a jujmp on our “20067″ taxes. We are at the end of the 2007! calendar year. So. your date should either be 2007 or 2008.
Get a proofreader!
Thanks for bringing this to my attention. I have corrected the error.
I was awarded Social Security Disibility. I received a lump sum of 35,000.00 and a monthly income. The total for the year of 2008 for me will be 46,408.00. My husband is on Reg Social Security. His is 16,224.00 for the year of 2008. Grand total of 62,632.00. Do we have to pay taxes on this. We both are over 60 and no children and no other income.
Annetta, I cannot provide tax calculations here. But if this is your only source of income, then I don’t think there is any tax due. You should file anyway so your husband can get the stimulus rebate based on his SS benefits.
your ss income should be taxed as ordinary income. You will owe 25% plus 1.45% in medicare. It’s a rip off I know but its due…
Chris, social security benefits are taxed differently. For many recipients, SS income can be completely tax-free.
Can I only withdraw $500 from my 401K at my age 60, and I only plan to withdraw $500 for the first 2 years then I would like to jump to $1,000 a month. Is it possible? So far, I only have $500,000 in my 401K account, and I am healthy and I would like to keep my life style simple. Do you think I can survive?
Billie, what you suggest may be possible. In order to take a withdrawal from your 401(k), you will first need to be no longer working at that employer. You’ll also want to learn more about required minimum distributions, which is the minimum amount you’ll need to withdraw from the account starting in the year you turn 70.5 years old.
any news on the obama camp raising the social security contribution limit?
Direct Communications, like you, I have heard the talk about raising the social security limits. The policy analysts at CCH foresee a legislative proposal in which “high-income wage earners would also see an increase in FICA tax, in the form of a payroll ’surtax,’ possibly as high as four percent, on earnings above $250,000.” No legislation has been introduced to this effect, and so there won’t be any debate over such a proposal until next year perhaps.