INSIGHTS & IDEAS

2008 Inflation adjusted amounts

The IRS has recently made COLA adjustments for more than three dozen tax items for the year 2008.  Each personal and dependency exemption has been increased to $3,500.  The standard deduction has been increased to $10,900 for married couples, $5,450 for singles and $8,000 for heads of household.  The tax bracket thresholds have also been increased.  For instance, the taxable income threshold separating the 15% and 25% brackets has been increased to $65,100.  The gift tax exemption remains at $12,000.



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