Things you need to know about 2008 Individual Income Tax Returns

With April 15 deadline fast approaching here are certain things which you must know:

Deductions

• There has been an increase in standard deductions for 2008 to $10,900 for surviving spouses, 5,450 for single filers and married persons filing separate returns and $8,000 for people filing as household heads.

• The maximum IRA deduction per person has been increased to $5,000 in 2008.

• Temporary property tax deduction has been made part of standard deduction.

Exemptions

• The limit for personal exemption in 2008 has been increased to $3,500 per person.

• There has been an increase in AMT exemption to $46,200 for single filers, $69,950 for joint filers and $34,975 for married persons filing separate returns.

Credits

First-time homebuyer can claim credit up to $7,500 and will also be available for first time home buyers purchasing home before July 1, 2009.

Exclusions

• $12,000 can be excluded from amount of gifts per tax payer for 2008.

• Exclusion of amount from estate for estate tax purpose is $2 million for 2008