Economic Stimulus Act of 2008 - See below article links for more information: 2008 Economic Stimulus Plan - Individuals 2008 Economic Stimulus Plan - Businesses   Selected Key Developments for the 2008 Tax Year Include the Following: The 5% tax rate on net capital gains and qualified dividend income for tax year 2007 drops to 0% for 2008.  This means that gains and dividends that otherwise should be taxed in the two lowest ordinary tax brackets (10% and 15%) will not be subject to federal income tax.  The 0% rate is scheduled to continue through tax years 2009 and 2010 unless changed by Congress. The contribution limit for individual retirement accounts (both traditional and Roth) increases to $5,000 in 2008.  A "catch up" provision permits an additional contribution of up to $1,000 by individuals who are at least age 50 in 2008. Distributions from certain retirement plans may be rolled over into Roth IRAs, starting in 2008.  Certain requirements apply. The "kiddie tax" provisions now apply to many college-age children with investment income. Unearned income of children under age 19 or Full-Time Students under age 24 may be taxed at Parents's rates. This applies to a child with income over the threshold amount $1,700 (indexed annually by inflation). Eligible taxpayers may elect under Section 179 of the tax code to deduct as a business expense the cost of new or used assets placed in service in 2008, as opposed to claiming depreciation, up to a maximum of $128,000 (limit reflects inflation adjustment).