
Decision Centers
2008 Tax Law Changes
The brackets for both 2008 and 2009 have been adjusted for inflation, and that's probably good news for you.
The standard deduction is higher and broader this year. The deduction amounts will grow again in 2009. There's a new break on real estate taxes that may boost the standard deduction for some taxpayers in 2008 and 2009.
These changes for 2008 and 2009 affect all members of your family.
Because fuel prices shot up so much in the first half of 2008, the IRS boosted mileage rates for business and medical and moving activities. Mileage rates drop back in 2009.
If you pay property taxes but don't have enough deductions to itemize, Congress gave you a new break for 2008 and 2009.
This helps taxpayers who might have too many deductions. But unless Congress acts, the exemptions could fall in 2009, raising taxes for thousands of taxpayers.
This credit will benefit most taxpayers who add children to their families through adoption.
This break, good for 2008 and 2009, lets teachers claim up to $250 in unreimbursed expenses as a deduction. And they don't have to itemize.
This tax break lets you deduct up to $4,000 in qualified education expenses for 2008 and 2009.
The credit is worth up to $7,500, but you have to buy a house by June 30, 2009.
Congress extends the sales tax deduction, which aims to level the playing field for taxpayers in states without income taxes.