• Standard Deduction
• Kiddie Tax
• Child Tax Credit
• Child and Dependent Care Credit
• Earned Income Credit
• 2008 Maximum Retirement Plan Contributions
• Lower Capital Gain & Dividend Tax Rate
• Foreign Earned Income Exclusion
• Standard Mileage Rate
• First-Time Homebuyer Tax Credit
• Additional Standard Deduction for Real Estate Taxes
• Estate and Gift Taxes
• Charitable Contributions
• HOPE Credit
• Lifetime Learning Credit
• Qualified tuition and related expenses
• Coverdell Eduaction Savings Accounts (ESA)
• Qualified Tuition and Fees Deduction
• Student Loan Interest Deduction
• Section 529 Plans Under Federal Regulations
• NY State College Choice Tuition Savings Program
• NJ State College Choice Tuition Savings Program

Highlights of 2008 Tax Changes

Lower Capital Gain & Dividends Tax Rate

Capital gains rates fall from 20% to 15% for higher income earners for qualifying property and stocks sold between May 6, 2003 through December 31, 2010. From 2008-2010, there will be a 0% capital gains for those in the 10% and 15% income tax brackets. After 2010, the sunset provisions spring to life (maybe) and capital gains taxes will increase to prior levels.

Qualified dividend income will be taxed at a maximum rate of 15% for most taxpayers. For individuals in the 15% or lower tax bracket, a 0% rate will apply to qualified dividends received in years 2008 - 2010. Stocks must qualify for -
60-day holding period.

Foreign Earned Income Exclusion

The amount of foreign earned income that you can exclude increased to $87,600 in 2008 ($91,400 in 2009). See Publication 54, Tax Guide for US. Citizens and Resident Aliens Abroad and Form 2555.

Standard Mileage Rate

The standard mileage rate for each mile use is:

First-time Homebuyer Tax Credit

Allows first-time homebuyers a refundable tax credit equal to 10 percent of the purchase price of a home, up to $7,500. The credit phases out for taxpayers with AGI in excess of $150,000 ($75,000 for single taxpayers). The credit applies to homes purchased starting April 10, 2008 through June 30, 2009. The first timehomebuyer credit must be repaid in equal installments over 15 years, interest free.

Additional Standard Deduction for Real Estate Taxes

For tax year 2008 & 2009, non-itemizers will be able to deduct the lesser of the amount of state and local real property taxes paid or $500 ($1,000 Married Filing Jointly).