Plan Your Taxes

Standard Deductions

Married Filing Joint/Surviving Spouse	$10,900
Single	$5,450
Head of Household	$8,000
Married Filing Separately	$5,450
Additional Aged/Blind – Married	$1,050
Additional Aged/Blind – Unmarried	$1,350
Taxpayer Claimed as Dependent	$900

Personal Exemption Phase-Out

The personal exemption amount in 2008 is $3,500. The exemption amount for taxpayers with adjusted gross income in excess of the maximum phase-out amount is $2,333.

Filing Status	Phaseout Begins When AGI Exceeds	Phaseout Complete When AGI Exceeds
Married Filing Joint/ Surviving Spouse	$239,950	$362,450
Single	$159,950	$282,450
Head of Household	$199,950	$322,450
Married Filing Separately	$119,975	$181,225

2008 Social Security Changes

Maximum Taxable Earnings

Social Security Wage Base (OASDI)	$102,000
Medicare Portion (HI)	No Limit

Social Security Tax Rates

Tax Rate	Employee Rate
Employee	7.65%*
Self Employed	15.30%

*The combined rate for Social Security 6.2% and Medicare 1.45%

At A Glance: Key Numbers For 2008

Plan Contribution Limits	2008
Defined Benefit Limit IRC 415(b)	$185,000
Defined Contribution Limit IRC 415 (c)	$46,000
Section 401(k) Plan	$15,500
Section 403(b) Plan	$15,500
Catch Up Provision 401(k) and 403(b)	$5,000
SIMPLE Plan IRC 408(p)(2)(E)	$10,500
SIMPLE Plan Catch Up Provision	$2,500
Section 457(b)(2) Limit	$15,500
Section 457(b)(2) Catch Up Provision	$5,000
Highly Compensated Employee Section 414(q)	$105,000
Maximum Compensation IRC 401(a)(17)	$230,000
SEP Earnings Threshold IRC 408(k)(2)(C)	$500
Traditional IRA and Roth IRA	$5,000
Traditional IRA and Roth IRA Catch Up	$1,000

Long Term Care Premiums
Age 40 or less	$310
Over 40 but less than equal to 50	$580
Greater than 50 but less than or equal to 60	$1,150
Greater than 60 but less than or equal to 70	$3,080
Greater than 70	$3,850

Social Security
Social Security Wage Base	$102,000
Social Security Tax Rate Employee	7.65%
Social Security Tax Rate Self Employed	15.30%

Transfer Tax
Annual Exclusion	$12,000
Noncitizen Marital Gift Exclusion	$128,000
Unified Credit Gift Tax	$345,800/$1,000,000
Unified Credit Estate Tax	$780,800/$2,000,000
Generation Skipping Exemption	$2,000,000
Highest Estate Tax Bracket	45%

Tax Rate Tables for 2008

Married Filing Joint/Surviving Spouse

If Taxable Income Is	The Tax Is
Not Over $16,050	10% of the taxable income
Over $16,050 but not over $65,100	$1,605 plus 15% of excess over $16,050
Over $65,100 but not over $131,450	$8,962.50 plus 25% of the excess over $65,100
Over $131,450 but not over $200,300	$25,550 plus 28% of the excess over $131,450
Over $200,300 but not over $357,700	$44,828 plus 33% of the excess over $200,300
Over $357,700	$96,770 plus 35% of the excess over $357,700

Head of Household

If Taxable Income Is	The Tax Is
Not Over $11,450	10% of the taxable income
Over $11,450 but not over $43,650	$1,145 plus 15% of excess over $11,450
Over $43,650 but not over $112,650	$5,975 plus 25% of the excess over $43,650
Over $112,650 but not over $182,400	$23,225 plus 28% of the excess over $112,650
Over $182,400 but not over $357,700	$42,755 plus 33% of the excess over $182,400
Over $357,700	$100,604 plus 35% of the excess over $357,700

Single

If Taxable Income Is	The Tax Is
Not over $8,025	10% of the taxable income
Over $8,025 but not over $32,550	$802.50 plus 15% of the excess over $8,025
Over $32,550 but not over $78,850	$4,481.25 plus 25% of the excess over $32,550
Over $78,850 but not over $164,550	$16,056.25 plus 28% of the excess over $78,850
Over $164,550 but not over $357,700	$40,052.25 plus 33% of the excess over $164,550
Over $357,700	$103,791.75 35% of the excess over $357,700

Married Filing Separate Returns

If Taxable Income Is	The Tax Is
Not Over $8,025	10% of the taxable income
Over $8,025 but not over $32,550	$802.50 plus 15% of the excess over $8,025
Over $32,550 but not over $65,725	$4,481.25 plus 25% of the excess over $32,550
Over $65,725 but not over $100,150	$12,775 plus 28% of the excess over $65,725
Over $100,150 but not over $178,850	$22,414 plus 33% of the excess over $100,150
Over $178,850	$48,385 plus 35% of the excess over $178,850

Estates and Trusts

If Taxable Income Is	The Tax Is
Not Over $2,220	15% of the taxable income
Over $2,220 but not over $5,150	$330 plus 25% of the excess over $2,200
Over $5,150 but not over $7,850	$1,067.50 plus 28% of the excess of $5,150
Over $7,850 but not over $10,700	$1,823.50 plus 33% of the excess of $7,850
Over $10,700	$2,764 plus 35% of the excess over $10,700

Additional Resources

• IRS Web site
• Tax Audits: Cause for Concern?
• Maximize Your Credits, Deductions, and Exemptions
• IRS Tax Tips
• Planning Your Itemized Deductions
• 1040 Tax Calculator
• Marginal Tax Calculator
• Estate Tax Planning Calculator
• Self Employment Tax Calculator
• Savings, Taxes & Inflation Calculator

The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.