2007 Mileage Rates

Business Mileage Rate	.485 per mile
Charitable Mileage	.14 per mile
Medical & Moving Mileage	.20 per mile

2008 Mileage Rates

Business Mileage Rate	.505 per mile
Charitable Mileage	.14 per mile
Medical & Moving Mileage	.20 per mile

Pension Limits

The maximum exclusion for elective deferrals for a 401(K) Plan, 403(B), 457(E) and a SARSEP is increased from $15,000 to $15,500 in 2007.

Catch-up contributions for individuals aged 50 or over has stayed at the same level as 2006 at $5,000 in 2007 for for 401(K), 403(B) and 457(E) plans.

SImple Retirement Accounts 408(P) have a maximum of $10,500 for 2007.

Catch-up contributions for a 408(P), Simple Plan has stayed at $2,500 for 2007.

Individual Retirement Plan (IRA) contributions  will remain the same in 2007 as they were in 2006.  The maximum IRA contribution remains $4,000 with a catch-up provision for taxpayers 50 and older for an additional $1,000. 

Social Security Wage Base for 2008

The maximum earnings subject to FICA withholding increases to $102,000 for 2008.  Beginning in 2007, individuals who are under full retirement age can earn up to $12,960 per year,($1,080 per month) before losing benefits. The year the individual reaches full retirement age(age 65 and eight months for retirees born in 1941; age 65 and ten months for retirees born in 1942),the earnings limit is $34,440 ($2,870 per month).  There is no limit on earnings beginning the month the individual attains full retirement age.

Personal Exemptions

2007	$3,400 per exemption
2008	$3,400 per exemption

Standard Deuction Amounts

	Married Filing Jointly	Single	Head of Household
2006	$10,300	$5,150	$7,550
2207	$10,700	$5,350	$7,850

Hope and Lifetime Learning Credits

For taxable years beginning in 2007, the Hope Scholarship Credit is an amount equal to 100 percent of qualified tuition and related expenses not in excess of $1,100 plus 50 percent of those expenses in excess of $1,100, but not in excess of $2,200.  Accordingly, the maximum Hope Scholarship Credit allowable for taxable years beginning in 2007 is $1,650.  For taxable years beginning in 2007, a taxpayer's modified adjusted gross income in excess of $47,000 ($94,000 for a joint return) is used to determine the amount of the Hope Scholarship and Lifetime Learning Credits otherwise allowable.

The Lifetime Learning Credit maximum credit remains the same for 2007.  The credit per taxpayer is equal to 20 percent up to $10,000 of qualifying higher education expenses with a maximum credit of $2,000.