Tax Facts Quick Reference to Tax Facts Standard Deductions 2008 2007 Joint or Qualifying Widow(er) $10,900 $10,700 Single $5,450 $5,350 Head of Household $8,000 $7,850 Married Filing Separately $5,450 $5,350 Additional for Elderly / Blind Married $1,050 $1,050 Additional for Elderly / Blind Unmarried $1,350 $1,300 Taxpayer Claimed as Dependent (with unearned income) $900 $850 Personal / Dependent Exemption $3,500 $3,400 Education Credits / Deductions (maximums) 2008 2007 Hope Scholarship Credit $1,800 $1,650 Lifetime Learning Credit $2,000 $2,000 Student Loan Interest Deduction $2,500 $2,500 Higher Education Deduction N/A $4,000 Teacher's Classroom Expense Deduction N/A $250 Gift and Estate Tax Exemptions 2008 2007 Annual Gifts $12,000 $12,000 Lifetime Gifts $1,000,000 $1,000,000 Estate (scheduled to increase) $2,000,000 $2,000,000 Auto Standard Mileage Allowances 2008 2007 Business $0.505 $0.485 Charity Work 0.14 0.14 Medical / Moving 0.19 0.20   IRC Section 179 Expense Election $128,000 $125,000 FICA / SE Tax Information 2008 2007 FICA / SE Taxable Maximum Earnings $102,000 $97,500 FICA Tax Rate (Employee) 6.2% 6.2% SE Tax Rate 12.4% 12.4% Medicare / SE Tax Information 2008 2007 Taxable Maximum Earnings Unlimited Unlimited Medicare Tax Rate (Employee) 1.45% 1.45% SE Tax Rate 2.9% 2.9% Earnings Ceiling for Social Security and Other Information Please visit www.ssa.gov/cola/colafacts2008.htm E-mail Pry Professional Group, Inc. at info@prygroup.com for more information or call (419) 423-4481.