Every year, Congress or the Internal Revenue Service makes life better or worse for taxpayers by changing U.S. tax laws or tax rules. 2008 was no exception. Changes for 2008 range from annual inflation adjustments to a new break on property taxes for taxpayers who own property but don't itemize deductions. Mileage rates for 2008 are two-tiered to account for the dramatic run-up in fuel costs in the first half of the year. A late and important break: a fix on the alternative minimum tax. Here are the changes that affect most taxpayers.
New tax brackets for all taxpayers

The brackets for both 2008 and 2009 have been adjusted for inflation, and that's probably good news for you.

Standard deduction goes up

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.

Personal exemption moves higher

These changes for 2008 and 2009 affect all members of your family.

High gas prices boost business-mileage rate

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.

Homeowners get a new break on property taxes

If you pay property taxes but don't have enough deductions to itemize, Congress gave you a new break for 2008 and 2009.

Alternative minimum tax exemption rises for 2008

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.

Adoption credit rises for 2008 and 2009

This credit will benefit most taxpayers who add children to their families through adoption.

Teachers get a popular break extended

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.

College tuition deduction is extended

This tax break lets you deduct up to $4,000 in qualified education expenses for 2008 and 2009.

A new tax credit targets first-time homebuyers

The credit is worth up to $7,500, but you have to buy a house by June 30, 2009.

Sales tax deduction extended through 2009

Congress extends the sales tax deduction, which aims to level the playing field for taxpayers in states without income taxes.