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2008 Dependent and Education Guidelines
2008/2009 Tax Rate Guide
2008 Filing Requirements
2008 Tax Deductions
2008 Earned Income Credit
2008 Dependent and Education Credits
2008 Miscellaneous Rates
2008 MACRS Recovery Periods
| DEPENDENT CARE CREDIT LIMITATIONS |
|---|
| To determine the amount of your credit, multiply your
work-related expenses (after applying the earned income and dollar
limits) by a percentage. This percentage depends on your adjusted gross
income shown on form 1040, line 37, or Form 1040A, line 21. The
following table shows the percentage to use based on adjusted gross
income. The maximum eligible to be multiplied by these percentages is
$3,000 per child, maximum of $6,000 per return. |
| IF YOUR ADJUSTED GROSS INCOME IS: |
THEN THE
PERCENTAGE IS: |
| OVER: |
BUT NOT OVER: |
| $0 |
15,000 |
35% |
| 15,000 |
17,000 |
34% |
| 17,000 |
19,000 |
33% |
| 19,000 |
21,000 |
32% |
| 21,000 |
23,000 |
31% |
| 23,000 |
25,000 |
30% |
| 25,000 |
27,000 |
29% |
| 27,000 |
29,000 |
28% |
| 29,000 |
31,000 |
27% |
| 31,000 |
33,000 |
26% |
| 33,000 |
35,000 |
25% |
| 35,000 |
37,000 |
24% |
| 37,000 |
39,000 |
23% |
| 39,000 |
41,000 |
22% |
| 41,000 |
43,000 |
21% |
| 43,000 |
No limit |
20% |
| COMPARISON OF EDUCATION CREDITS |
|---|
| HOPE CREDIT |
LIFETIME LEARNING CREDIT |
| Up to $1,800 |
Up to $2,000 |
| Equals 100% of first $1,200 in qualified expenses and 50% of the
next $1,200 in qualified expenses. |
Maximum lifetime learning rate is 20% |
| Available only until the first 2 years of post-secondary education
are completed. |
Available for all years of post-secondary education and for courses
to acquire or improve job skills. |
| Available only for 2 years per eligible student |
Available for an unlimited number of years |
| Student must be pursuing an undergraduate degree or other recognized
educational credential |
Student does not need to be pursuing a degree or other recognized
educational credential |
| Student must be enrolled at least half time for at least one
academic period beginning during the year |
Available for one or more courses |
| No felony drug conviction on student's credit |
Felony drug conviction rule does not apply |
| HOPE AND LIFETIME LEARNING CREDITS PHASEOUT |
|---|
| MODIFIED ADJUSTED GROSS INCOME PHASEOUT: |
| Married filing jointly |
$96,000 - $116,000 |
| All other filing statuses |
$48,000 - $58,000 |
| QUALIFYING CHILD |
|---|
A qualifying child for purposes of the child tax credit must be all
of the following:
- Claimed as your dependent on line 6c of Form 1040 or Form 1040A.
- Under age 17 at the end of 2008.
- Your:
- Son, daughter, adopted child, stepchild, or a
descendant of any of them (for example, your grandchild), or
- Brother, sister, stepbrother, stepsister, or a
descendant of any of them (for example, your niece or nephew)
whom you cared for as you would your own child, or
- Foster child (any child placed with you by an
authorized placement agency whom you cared for as you would your
own child).
- A U.S. citizen or resident alien.
Adopted child. An adopted child is always treated as
your own child. An adopted child includes a child placed with you by an
authorized placement agency for legal adoption even if the adoption is
not final.
Kidnapped child. A kidnapped child is treated as a
qualifying child for the child tax credit if both of the following
statements are true:
- The child is presumed by law enforcement authorities to have
been kidnapped by someone who is not a member of your family or the
child's family.
- The child qualified as your dependent for the part of the year
before the kidnapping.
This treatment applies for all years until the child is returned.
However, the last year this treatment can apply is the earlier of:
- The year there is a determination that the child is dead, or
- The year the child would have reached age 16.
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| ADOPTION CREDIT |
|---|
| Maximum credit for a child with special needs |
$11,650 |
| Other adoptions, qualified expenses |
Up to $11,390 |
| Phaseout range, modified adjusted gross income |
$174,730 - $214,730 |
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Fremont, CA 94538
510.797.8661
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