2008 Taxes

Summary of the most important changes in the tax law impacting your 2008 tax returns.

The recovery rebate credit is a special federal tax credit for 2008 only. The credit is available for individuals who did not apply for the economic stimulate rebate in 2007. The recovery rebate credit is also available for people who's rebate is higher when calculated using their 2008 financial information.

The first piece of tax legislation in 2008, the Economic Stimulus Act provides that the taxpayers will receive a one-time rebate in mid-2008. The rebates, or "stimulus payments" as they are being called by the IRS, will be mailed or sent via direct deposit to individuals who file a 2007 tax return and meet certain eligibility requirements.

Congress has approved one-time tax rebates as part of a plan to stimulate the economy. Individuals will receive early tax rebates, businesses will be allowed to write-off additional investments in fixed assets, and provides higher dollar limits for conforming mortgage loans.

The Housing Assistance Tax Act of 2008 provides a four important tax law changes that impact individuals and small businesses: tax credit for first-time homebuyers; additional property tax deduction for people who don't itemize; reporting of merchant payments to the IRS; and prorated capital gains exclusion for real estate for periods of non-primary use.

Overview of key tax figures for 2008. Includes standard deduction, personal exemption, phaseout ranges for itemized deductions, and retirement plan contribution limits.

Marginal income tax rates for the 2008 tax year.