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TAX Taxable Income      
TABLE Tax Rate Over Up to PERSONAL EXEMPTION: $3,500
10% $- $16,050
Married 15% $16,050 $65,100 STANDARD DEDUCTIONS:
Filing 25% $65,100 $131,450 Married Filing Joint $10,900
Joint 28% $131,450 $200,300 Single and Married Filing Separately $5,450
33% $200,300 $357,700 Head of Household $8,000
35% $357,700 no limit
10% $- $8,025
15% $8,025 $32,550 Traditional IRA Contribution $5,000
     Single 25% $32,550 $78,850 Catch Up Contribution for Age 50 and Older $1,000

28% $78,850 $164,550
33% $164,550 $357,700 Simple IRA $10,500
35% $357,700 no limit Catch Up Contribution for Age 50 and Older $1,500
Tax Rate Over Up to
10% $- $11,450 SEP IRA $46,000
15% $11,450 $43,650 (Maximum Compensation Considered) $230,000
Head 25% $43,650 $112,650
Of 28% $112,650 $182,400 401K $15,500
Household 33% $182,400 $357,700 Catch Up Contribution for Age 50 and Older $5,000
  35% $357,700 no limit    


Important Stimulus Rebate Information

Deduction for Real Estate Taxes Paid

Credit for Energy Efficient Home Improvements

First Time Homebuyer Tax Credit

Foreclosure Relief

Mileage Deduction Rates

Hope & Lifetime Learning Credit

Capital Gain Exclusion on Vacation or Rental Property Conversions

Section 179 Deduction

Bonus Depreciation

0% Adjusted Net Capital Gain Rate

Deduction for Private Mortgage Insurance


Taxation of Social Security Benefits

Deduction for Health Insurance Premiums Paid

Property Tax Credit For Certain Veterans and/or Their Spouses



Important Stimulus Rebate Information:    Many taxpayers did not qualify, or qualified for a reduced rebate
based upon their 2007 income tax return for reasons such as too much income, or too little earned income.  If your
tax situation has changed in 2008, you may be able to recover the remaining rebate that was previously disallowed.
Also, if a taxpayer has a newborn baby in 2008, the taxpayer may qualify for an additional $300 rebate in 2009. For
parents who alternate the dependency exemption, there is good news; the parent claiming the dependent in 2008
may still qualify for a rebate of $300 even though the other parent received the rebate for the same child in the
previous year.

Above the Line Deduction for Real Estate Taxes Paid:  For tax year 2008 only, single taxpayers who do not
itemize may be able to claim a deduction up to $500 ($1,000 if married filing joint) for real estate taxes paid on the
taxpayer's principal residence.

Credit for Energy Efficient Home Improvements:  There will be NO credit available in 2008 for energy efficient
home improvements.  The credit will be in effect once again beginning January 1st, 2009 and ending December 31st,
2009. If you have not already met the maximum lifetime credit limit, consider waiting until 2009 to install your
qualified energy efficient improvements.

1st Time Homebuyer Tax Credit:  For a primary residence purchased between April 9th, 2008 and July 1st,
2009, a credit of $7,500 may be available on your federal income tax return.  This credit is refundable, meaning if
you have a tax liability of $5,000 for 2008, you could receive up to a $2,500 refund.  The credit is available to first
time homebuyers only (those who have not owned a primary residence in the preceding 3 years).  This credit,
however, must be repaid to the IRS over a 15 year time span in 15 equal payments beginning 2 years from the year
the credit was claimed.  Think of this credit as an interest free loan.  Please click here for additional information
(you will be redirected to a 3rd party website).

Foreclosure Relief:  For tax years 2007, 2008, and 2009, up to $2 million of debt forgiven on the foreclosure
one's primary residence is eligible to be excluded from taxable income.  The debt forgiven that is excluded from
income will reduce the taxpayer's basis in the property.  This could result in a capital gain if the gain on the
foreclosure exceeds the section 121 exclusion limits ($250,000 for single filers and $500,000 for married filing

Mileage Deduction Rates:  
Business Miles (January 1st - June 30th, 2008): 50.5 cents per mile
Business Miles (July 1st - December 31st. 2008): 58.5 cents per mile
Charitable Contribution: 14.0 cents per mile
Medical Travel: 19.0 cents per mile

Hope & Lifetime Learning Credit:  The maximum credit for 2008 will be $1,800, up from $1,650 in 2007.  The
credit will be dollar for dollar on the first $1,200 of qualified expenses, and 50% of the next $1,200.  The maximum
Lifetime Learning Credit will remain at $2,000 (20% of qualified educational expenses up to $10,000).

If a taxpayer (or dependent) attends a school located in a federal disaster area that qualifies for individual
assistance, the maximum Hope Credit will double.  Also, 40% of qualified educational expenses up to $10,000 may
be used in determining the Lifetime Learning Credit.  In addition, room and board, as well as books, can be
included as qualifying expenses.  To determine if you or a dependent attend a school in a federal disaster area eligible
for individual assistance please click here (you will be redirected to a 3rd party website).
  If the school is located in
a county highlighted in orange or red, the taxpayer will qualify for the higher credits.  Only the location of the school
is relevant; it does not matter where the student lives.

Capital Gain Exclusion On Vacation and Rental Property Conversions:  Under current tax laws, when a
vacation or rental property is converted to a principal residence and later sold, a portion of the gain on sale may be
subject to tax even if the taxpayer would otherwise qualify under the Section 121 Exclusion.  The amount subject to
tax is based on the fraction of time after 2008 that the property was used as a vacation or rental property over the
total time the property has been owned by the taxpayer.  For example, assume a taxpayer purchased a vacation
home in the year 2001, converted the property to a principal residence in 2011, and sold the property in 2015.  The
percentage of gain subject to tax will be 13.3% (2/15).   Under previous law, a taxpayer would have qualified for
the full Section 121 Exclusion as long as he/she lived in the property for 2 of the last 5 years.

Section 179 Deduction:  The maximum Section 179 deduction for tax year 2008 will be $250,000.  This
expensing limit will be reduced if the cost of qualifying property placed into service in 2008 exceeds $800,000.

Bonus Depreciation:  50% bonus depreciation on qualifying property is back!  Bonus depreciation can generally
be claimed on tangible property that is placed into service new in 2008 and has a recovery period of less than 20
years.  Bonus depreciation can also be claimed on qualified leasehold improvements and purchased software.
Combine Bonus Depreciation with the Section 179 deduction for maximum first year expensing.

0% Adjusted Net Capital Gain Rate: For tax years 2008 thru 2010, certain capital gains and qualified dividends
may not be subject to federal income tax.  If a taxpayer falls in the 10% or 15% tax bracket before considering the
Adjusted Net Capital Gain (ANCG), then the ANCG up to the top of the 15% bracket when combined with
ordinary income, will not be subject to tax.  The amount of ANCG exceeding the 15% bracket will be subject to a
15% tax rate.  For most taxpayers, the ANCG will simply be the sum of the net capital gains from the sale of stocks,
bonds and mutual funds, and qualified dividend income.

Example: (Married Filing Joint)
Wages: $50,000
Interest Income: $1,000
Adjusted Net Capital Gain: $40,000
Standard Deduction: $10,900 (see above Tax Table)
Exemptions: $7,000   (see above)
Taxable Income Ignoring ANCG: $33,100 ($50,000+$1,000-$10,900-$7,000)
Top of 15% Tax Bracket (2008): $65,100 (see above Tax Table)

Since the taxpayers are within the 15% bracket ignoring the ANCG, $32,000 of the ANCG will avoid federal
income tax, calculated as follows:

Top of 15% Bracket: $65,100
Less Taxable Income Ignoring ANCG: $33,100

The remaining ANCG of $8,000 ($40,000-$32,000) will be subject to a 15% tax rate.

Deduction For Private Mortgage Insurance (PMI):  The itemized deduction for PMI will be extended thru
2010.  To qualify for the deduction, the purchase or refinance of a primary or 2nd residence giving rise to the PMI
must have occurred after January 1st, 2007.  The deduction is phased out for taxpayers with Adjusted Gross
Income (AGI) exceeding $100,000.  The deduction is reduced by 10% for every $1,000 above $100,000.  The
deduction is completely phased out when AGI exceeds $109,000.


Taxation of Social Security Benefits:  Beginning in 2008, Wisconsin will no longer collect income tax on social
security benefits.

Deduction for Health Insurance Premiums Paid:  For tax year 2008, a taxpayer who has no employer and
no self-employment income may subtract from Wisconsin income 2/3 of the health insurance premiums paid. A
Self-employed taxpayer and employed taxpayer whose employer does not contribute toward the cost of his or her
health insurance will be allowed to subtract 100% of the health insurance premiums paid.  A taxpayer whose
employer pays only a portion of the cost of the medical care insurance may be eligible for a subtraction equal
to 10% of the premiums paid by the taxpayer.  The premiums paid by the taxpayer must be paid from after tax
funds (not thru a cafeteria plan).  The amounts subtracted from Wisconsin income for medical care insurance cannot
be included when calculating the itemized deduction credit.

Property Tax Credit For Certain Veterans Or Their Spouses:  A credit equal to 100% of the real estate tax
paid on a principal residence will be available for veterans over age 65 with a 100% service related disability,
un-remarried spouses of veterans killed in duty, or spouses of deceased veterans with a 100% disability rating and
over age 65 when they died.


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