|  IRS
grants tax relief for Southern California Wildfire Victims. Click
here for details.
06/16/08: Corporation
second quarter estimated tax payments due. Use form 1120-W.
06/16/08: Personal
second quarter estimated tax payments due. Use form 1040-ES.
07/31/08: Employee
benefit plans with a December year end filing due. File form 5500 to report
the 2007 annual activity in the plan. If necessary, file form 5558 to request
a three month extension of time to file the return.
California
legislation requires that individual tax returns prepared professionally
be filed electronically. For more information, please see the Franchise
Tax Board web site FAQ regarding this requirement. (The Franchise Tax
Board link opens in a new window.) | Alternative
minimum tax will continue to affect many more individual taxpayers this
year. This means the prepayment of state tax or real estate tax by December
31 may not result in tax savings.
The
social security wage base for 2007 is $97,500. For 2008, the limit is
$102,000.
The
federal gift tax exclusion for 2007 and 2008 is $12,000.
IRS
standard mileage rates are as follows:
| |
2007 |
2008 |
Business |
48.5¢ |
50.5¢ |
Medical |
20.0¢ |
19.0¢ |
Charitable |
14.0¢ |
14.0¢ |
|
|
|
2007
and 2008 maximum contributions and limits to 401(k), pension plans, and
individual retirement accounts (IRAs) are as follows:
| Description |
Amount |
| |
2007 |
2008 |
401(k) |
Maximum employee 401(k) contribution limit
|
$15,500 |
$15,500 |
Catch up contribution limit (over age 50)
|
$5,000 |
$5,000 |
Compensation
Limits |
| Maximum annual compensation limits for determining
benefits or contributions under a qualified plan |
$225,000 |
$230,000 |
SEP
(Simplified Employee Pension) |
| Maximum annual defined contribution and maximum
contribution to a SEP |
$45,000 |
$46,000 |
| SEP minimum compensation |
$500 |
$500 |
IRA
(Individual Retirement Account)
|
| Traditional IRA, non-deductible, or Roth IRA contribution
limits |
$4,000 |
$5,000 |
| IRA catch up deferral (over age 50) |
$ 1,000 |
$ 1,000 |
SIMPLE
IRA |
| Maximum employee deferral to a SIMPLE IRA |
$10,500 |
$10,500 |
| SIMPLE IRA catch-up deferral (over age 50) |
$2,500 |
$2,500 |
|
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