6. Keogh and SEPs: The maximum contribution to Keogh and SEPs (Simplified Employee Plan) increases to $46,000.

7. IRAs: The phase-out limits for contributions to Traditional and Roth IRAs have increased to $5000 from $4000, with an extra $1000 allowed for taxpayers 50 and older. Phase-out levels are married/filing jointly with AGI (adjusted gross income) of $159,000 and $101,000 for single filers.

8. 401(k) Plans: The maximum contribution to a 401(k) plan in 2008 is $15,500 if you are younger than 50; $20,500 if you are 50 or older.

9. Standard mileage rates have increased to 50.5 cents for business miles, decreased to 19 cents for medical and moving miles. Charitable mileage rate remains 14 cents/mile.

10. Earnings and Social Security: The amount of money you may earn before you Social Security benefits are affected has changed:

a. For people attaining NRA or normal retirement age (as defined by the folks at Social Security; click here to find your NRA) in 2008, the annual exempt amount is $36,120. This higher exempt amount applies only to earnings made in months prior to the month of NRA attainment.

b. For people attaining NRA after 2008, the annual exempt amount in 2008 is $13,560.

When earnings exceed exempt amounts, Social Security withholds $1 in benefits for every $2 of earnings in excess of the lower exempt amount. It withholds $1 in benefits for every $3 of earnings in excess of the higher exempt amount.

Every little bit helps, so be sure to take advantage of every tax break you're allowed. We recommend you discuss these and other changes, and how they affect YOU, with your tax advisor.

For more of our advice on taxes, click here to go to our Taxes section. And if you want to get smarter about everything money, here's what we want you to do: Sign up for our FREE email tip letter Your Money Matters with Ken & Daria Dolan. It's loaded with advice to make your life simpler and more rewarding - and it's FREE. Click here to sign up now!

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