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A Preview of the 2008 Federal Income Tax Brackets
By JLP | September 26, 2007
Here’s a look at the expected Federal Income Tax brackets for 2008. The official brackets from the IRS won’t be available until later this year. I found these numbers in an article in today’s Wall Street Journal, which has the following three individuals listed as the source for their information:
William Massey, RIA tax analyst at Thomson Tax & Accounting
George Jones, CCH
James C. Young, Professor at Northern Illinois University
The brackets:
In addition, the basic standard deduction is supposed to increase to $10,900 (up $200 from 2007) for married filing jointly and for most single filers it will increase to $5,450 (up $100 from 2007). The personal exemption will increase to $3,500, which is a $100 increase over 2007.
A lot of this won’t mean diddly to a lot of filers if congress doesn’t do something with the AMT, which is expected to impact 25 million people in 2008 if something isn’t done. OUCH! Long-time readers know my distaste for the AMT.
For those who are interested, here’s some additional tax posts I have done that you might find helpful:
Tax Stuff You Need to Keep In Your Records
50 of the Most Easily Overlooked Tax Deductions
2007 Federal Income Tax Brackets
401(k) Contribution Limits for 2007
What is Modified Adjusted Gross Income?
Tax Links: Online Tax Resources
How to Calculate Tax-Equivalent Yield
Social Security Wage Base for 2007
Topics: Tax Planning, Taxes |
September 26th, 2007 at 4:23 pm
I see a mistake….
single filer for 35% in 2008 should be a little bit higher ….at least thats what I hope
September 26th, 2007 at 5:14 pm
“AMT… expected to impact 25 million people in 2008 if something isn’t done”
Heh, heh, heh, welcome to my AMT world…
September 26th, 2007 at 7:41 pm
I’d love to be in the 35% bracket, even if I had to pay all those taxes. *sighs*
September 26th, 2007 at 9:31 pm
[...] AllFinancialMatters has a preview of the 2008 Federal Income Tax Brackets and is kind enough to provide you with the tax rate tables for “Married, Filing Jointly” and “Most Single Filers” plus the new personal exemption and standard deduction amounts. [...]
September 26th, 2007 at 10:08 pm
Wow… If you made $1,000,000 you’d be giving away $350,000+… That’s crazy
September 27th, 2007 at 2:26 pm
If you made $1,000,000 a lot of it would not likely be salary income, much of it would be capital gains, taxed at a different rate.
September 28th, 2007 at 5:19 am
Star Money Articles for the Week of September 24
Here are some recent interesting posts from the MoneyBlogNetwork and beyond: Consumerism Commentary says Best Buy wants to train us hi-def novices. AllFinancialMatters previews 2008 tax brackets. MightyBargainHunter gives his thoughts on Maxed Out. Fiv…
September 28th, 2007 at 2:34 pm
[...] A Preview of the 2008 Federal Income Tax Brackets. AllFinancialMatters is way ahead of the game. I haven’t started by 2007 taxes yet. [...]
September 28th, 2007 at 2:58 pm
@Tim
True, but you would still be taxed heavily.
And there are tons of CEO’s with $1,000,000+ salaries.
September 30th, 2007 at 11:44 pm
[...] All Financial Matters gives a sneak peek at the 2008 tax brackets. [...]
October 1st, 2007 at 9:39 am
@Buildandsucceed
You wouldn’t be paying the full 35% on a $1000000 income. Depending if you are single or married, you would pay 10% on the first bracket, 15% on the next bracket, 25% on the next, and so on. That’s why its called a progressive income tax. As your income progresses, you pay an addition percentage.
January 17th, 2008 at 3:36 pm
Does anyone know: Is the tax bracket you’re in based on what your pre-tax and other deductions income is, or is it based on what you’re in after all the deductions.
For example, could contributing to my 401(k) put me in a lower tax bracket?
January 17th, 2008 at 3:50 pm
Stephanie,
Your bracket is based on your taxable income. So, your 401(k) contributions could put you in a lower bracket.
January 19th, 2008 at 1:58 pm
It is time to stop taxing Social Security or at least increase the $32000 limit for married filers and increase it with the cost of living.
Thank you Bill Clinton for taxing my hard earned retirement payments.
January 24th, 2008 at 1:47 pm
Hi, If you had the choice between taking out $40,000.00 of your inherited cash which is part of a larger IRA to pay off debts (but didnt have to sell stocks to get that $ & your tax bracket is $15% but perhaps less since I am on SSD & earn less than 14,000.00 a year) or take out a 9% re-fi on a 2nd home, which is being rented for $1000.00 a month that will be sold in 3 years with a contract)- is it as simple as comparing interest rates to decide that a 9% re-fi is a better deal than a 15% deal? ( the 9% is non-negotiable as I can only get a “no doc/no asset loan” at that rate unfortunately)or are there other matters to consider. One that I can think of is thats the re-fi includes $5000.00 in closing costs put into the loan & the rule that states that one should not re-fi if you are going to sell within 3 years due to being unable to recoup the closing costs - comes to mind. All reliable info welcome but it has to come asap. Greatly appreciate anyone’s attention to help. Diane
February 23rd, 2008 at 1:08 pm
[...] Spinoff question…how do I see if dh switching jobs will help us tax wise I don’t really understand it. I say this is a spin-off because of the other post here in the forum about my dh thinking about moving out of administration and into teaching which would be a big pay cut. Someone mentioned checking the tax brackets. I looked at this site here: A Preview of the 2008 Federal Income Tax Brackets—AllFinancialMatters Ok, I also looked at this years tax return and we use the form: 1040 Do I look at our total income and then check that number on the tax brackets? Or do I look at line 43 that says "taxable income" and use that number when looking at the tax brackets? The two numbers are vastly different. (our taxable income is around $40K less than our total income) How do I "guesstimate" what tax bracket we’d be in if dh switches jobs? Do I look at what his teaching salary most likely would be and then add mine to it?…..but if he switches jobs, his income would not change until August 2008. Does this make sense? I sure hope so. When I look at those tax brackets, it looks like there is a big jump from being in the 15% bracket up to a 25% bracket! Michelle __________________ "If it has to do with following rules, then it sure aint’ grace!" My feedback thread: http://www.amitymama.com/vb/showthread.php?t=83439 [img]http://im1.shutterfly.com/procserv/47b4ce25b3127cce99c876b7033800000040108IatGbNy3bW [...]
June 3rd, 2008 at 6:22 pm
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June 4th, 2008 at 1:41 pm
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July 1st, 2008 at 8:02 pm
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July 8th, 2008 at 4:57 pm
[...] of the 2008 Federal Income Tax BracketsA look at the expected 2008 federal income tax brackets.http://allfinancialmatters.com/2007/09/26/a-preview-of-the-2008-federal-income-tax-brackets/Tax facts: Obama vs. McCain Chicago Sun-TimesThe rich would pay more under Barack Obama’s tax plan, [...]