Thinking about 2008 yet?

Have you given any thought to 2008 yet? The IRS has and they have made more than three dozen changes that will effect most all taxpayers.

For 2008, personal exemptions and standard deductions will rise, tax brackets will widen and workers will be able to save more for retirement, thanks to inflation adjustments announced last week by the IRS.

Here are a few changes worth noting.

• The value of each personal and dependency exemption, available to most taxpayers, is $3,500, up $100 from 2007.

• The new standard deduction is $10,900 for married couples filing a joint return (up $200), $5,450 for singles and married individuals filing separately (up $100) and $8,000 for heads of household (up $150). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
  
  
• The maximum Hope credit, available for the first two years of post-secondary education, is $1,800, up from $1,650 in 2007.

Take advantage of the changes to make adjustments to your withholding on your paycheck. Remember when you get a refund from your tax return, you have given the government a interest free loan for 15 - 18 months.