John M. Hoffman & Associates CPAs

Frequently Asked Questions

Important Tax Numbers ($'s)

• Standard Deduction

Tax Year	2007	2008*
Married Filing Jointly	$10,300	$10,300
Single	$5,150	$5,150
Head of Household	$7,550	$7,550
Dependent **	$850	$850
Married Filing Separately	$5,150	$5,150
Additional Amount for Age (65) or Blindness	$1,000	$1,000

* 2008 numbers are estimated at the same as 2007 and will be updated when released.

The standard deduction is the amount that the IRS allows taxpayers who do not itemize their deductions, to claim instead. Claiming the standard deduction is not a bad thing. Taxpayers over 65 years old, or blind, get an additional $1,000 standard deduction.

** Dependents get a standard deduction equal to the lesser of the single amount, or their earned income but not below the above amount.

Advantages of claiming the standard deduction:

• No itemized deductions subject to audit.

• When itemizing, only the amounts above the standard deduction give rise to a tax benefit.