Tax Changes for Individuals | |
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Child-Related Tax Changes Information on adoption benefits, child and dependent care credit, child's investment income, and additional child tax credit. Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips When figuring the credit, the amount of tips received during the month should be reduced by wages payable. Credit for Prior Year Minimum Tax There are several changes to the credit for prior year minimum tax. Earned Income Credit The earned income credit amounts have increased for 2008. Education-Related Tax Changes Information on education savings bond exclusion, hope and lifetime learning credits, tuition and fees deduction, and student loan interest deduction. Exclusion of Income for Volunteer Firefighters and Emergency Medical Responders For tax years beginning after 2007 and before 2011, gross income ... Health/Medical-Related Tax Changes Information on Archer Medical Savings Accounts (MSAs), Health Savings Accounts(HSAs), and long-term care premiums. Home/Residence-Related Tax Changes Information on mortgage insurance premiums, residential energy credits, and sale of main home by employees of intelligence communities. Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion New limits on exclusion payments made under a long-term care insurance contract. Itemized Deductions The itemized deduction phaseout income limits have increased for 2008. Maximum Tax Rate on Qualified Dividends and Net Capital Gain Reduced There are changes to the maximum tax rate on qualified dividends and net capital gain. New Form 8919 If you were an employee treated as an independent contractor, use new Form 8919 to figure and report uncollected social security and Medicare taxes. Penalty for Failure to File Income Tax Return Increased The failure to file penalty has increased. Penalty for Frivolous Tax Submissions Increased The penalty for frivolous filings has increased. Personal Exemptions The deduction amount and phaseout income levels have increased for 2007. Also, the definition of qualifying relative is clarified. Recovery Rebate Credit See if you are eligible for the recovery rebate credit. Social Security and Medicare Taxes The maximum amount of wages subject to the social security tax and Medicare tax has increased for 2007 and 2008. Standard Mileage Rate The standard mileage rate for business use of your vehicle, medical and move- related use and charitable use has increased for 2008. Vacant Land Used as Part of Main Home Destroyed by a Hurricane You may qualify to exclude from income gain from the sale of vacant land you owned and used as part of your main home that was destroyed by Hurricanes Katrina, Rita, or Wilma. Wage Threshold for Household Employees The social security and Medicare wage threshold for household employees is... |
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Page Last Reviewed or Updated: January 10, 2009