2 Important Changes in the Tax Law this Tax Season
The Standard Mileage Rates for travel in 2008 have improved to help compensate for higher gas prices experienced during the year. While the Kiddie Tax has been adjusted to include more children.
1. Standard Mileage Rates Change
The only standard mileage rate to not change is the mileage rate for volunteer travel. But all other forms including business and medical travel have increased. The mileage rate for business travel increases to 50.5 cents a mile for the first half of the year while the second half of the year gets a very favorable 58.5 cents a mile. The medical travel rates have similar increases with the first half of the year being 19 cents a mile while the second half of 2008 increases to 27 cents a mile.
2. The Children Investment Tax Have Been Changed
The so called “Kiddie Tax” has expanded to include older children and not just children younger than 18 years old. If your child is 18 years old and did not provide for at least 50% of their support during the year they will now have to have their investment income taxed at the parents tax rate. Or if you child is 18 to 24, a student, and did not support themselves above 50% of needed funds they will also have investment earnings taxed at the higher parental rate.2 Important Changes in the Tax Law this Tax Season by Steve