There have been some changes in the tax-law again this year, so it's a good idea to go over your list of tax deductions a couple of times so that you have included the changes that will affect your return. One of the big changes this year is that the exemption for the Alternative Minimum Tax has been increased. Some other tax credits and deductions that were going to expire have been extended. There's a new standard personal property tax deduction and first time homeowners receive a special credit that is an additional tax deduction.
Credits are available for Retirement Savings and the payments received from the economic stimulus package are not taxable and don't need to be reported on your 2008 tax return. As a taxpayer you may qualify for the Recovery Rebate Credit if you did not get a stimulus payment. Instructions listing whether you qualify are listed on form 1040, 1040 A and 1040 EZ.
The list of tax deductions still includes the deduction for state and local taxes on form 1040 Schedule A, Line 5. The educator expense deduction on Line 23 or Form 1040A line 16. Tuitions and fees on form 8917 and the District of Columbia first-time homebuyer credit on Form 8859 are the same as 2007.
The non-business energy property credit for energy efficient insulation, windows, doors furnaces and water heaters in your main residence is not available in 2008, but the residential energy-efficient property credit is and will continue through 2016. Wind energy and geothermal heat pumps credits can be applied to your 2008 itemized deduction. The standard deduction changes a little this year because you can claim an additional standard deduction based on state or local real estate taxes you paid or if you had a disaster loss from a federally declared disaster.
Business expenses have changed. The standard mileage rate has increased to 50.5 cents per mile for the first six months of 2008 which is 2 cents higher than 2007 and 58.5 cents for the rest of 2008. If you keep a 12 month expense worksheet remember to increase the mileage rate for the last six months of 2008.
The exemption value for each personal and dependent has increased to $3500, which is up $100 from 2007. This is just one of over three dozen individual and business tax deductions that are adjusted each year to keep up with inflation. For the convenience of your employer and for your personal convenience a list of all the changes can be found in the publication: 2008 Inflation Adjustments Widen Tax Brackets, Change Tax Benefits.
Child care tax credit remains the same as 2007, but the tax on a child's investment income applies if the income is over $1800 and the child is under 18 years old or is 18 and has an income that is equal to or less than half of his or her total support or is over 18 and under 24 and was a student during 2008 and had earned income equal or less than half of his or her support.
Another change that can be added to the list of tax deductions is the self-employment tax changes. Anyone who receives Social Security Retirement or disability benefits or any Conservation Reserve Program payments is now exempt from the 15.3-percent social security self-employment tax. Instructions on how to fill out the forms for this deduction is in Publication 225, Farmer's Tax Guide.
Ian Pennington is an accomplished niche website developer and author. To learn more about List of Tax Deductions , please visit Home Business Scam Blog for current articles and discussions.