In 2008, the amount taxpayers can deduct for each exemption increased from $3,400 to $3,500. (Exemptions are covered in more detail in the Personal and Dependency Exemptions lesson.)

The standard deduction (for taxpayers who do not itemize deductions on Schedule A (Form 1040) is higher in 2008 than it was in 2007.

The standard mileage rate for use of a vehicle for medical care and moving expenses is 19 cents a mile from 1/1/08 - 6/30/08 and 27 cents a mile from 7/1/08 - 12/31/08.