Important Tax Figures for 2024

Written by Andrew G. Klapac | Dec 27, 2023 8:00:00 PM

The following chart provides some important federal tax information for 2024, as compared with 2023:

Social Security/Medicare

2024

2023

Social Security Tax Wage Base

$168,600

$160,200

Medicare Tax Wage Base

No limit

No limit

Employee portion of Social Security

6.2%

6.2%

Employee portion of Medicare

1.45%

1.45%

Individual Retirement Accounts

2024

2023

Roth IRA Individual, up to 100% of earned income

$7,000

$6,500

Traditional IRA Individual, up to 100% of earned Income

$7,000

$6,500

Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older

$1,000

$1,000

Qualified Plan Limits

2024

2023

Defined Contribution Plan limit on additions (Sections 415(c)(1)(A))

$69,000

$66,000

Defined Benefit Plan limit on benefits (Section 415(b)(1)(A))

$275,000

$265,000

Maximum compensation used to determine contributions

$345,000

$330,000

401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2))

$23,000

$22,500

401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older

$7,500

$7,500

SIMPLE deferrals (Section 408(p)(2)(A))

$16,000

$15,500

SIMPLE additional "catch-up" contributions for employees age 50 and older

$3,500

$3,500

Compensation defining highly compensated employee (Section 414(q)(1)(B))

$155,000

$150,000

Compensation defining key employee (officer) in a top-heavy plan

$220,000

$215,000

Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c))

$750

$750

Driving Deductions

2024

2023

Business mileage, per mile

67 cents

65.5 cents

Charitable mileage, per mile

14 cents (the rate is set by statute)

14 cents (the rate is set by statute)

Medical and eligible moving*, per mile

21 cents

22 cents

Business Equipment

2024

2023

Maximum Section 179 deduction

$1.22 million

$1.16 million

Phase out for Section 179

$3.05 million

$2.89 million

Business Meals

2024

2023

General deduction for eligible business-related food and beverage expenses

50%

50%

Transportation Fringe Benefit Exclusion

2024

2023

Monthly commuter highway vehicle and transit pass

$315

$300

Monthly qualified parking

$315

$300

Standard Deduction

2024

2023

Married filing jointly

$29,200

$27,700

Single (and married filing separately)

$14,600

$13,850

Heads of Household

$21,900

$20,800

Domestic Employees

2024

2023

Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc.

$2,700

$2,600

Kiddie Tax

2024

2023

Amount used to reduce the net unearned income reported on a child's return that's subject to the Kiddie Tax

$1,300

$1,250

Estate Tax

2024

2023

Federal estate tax exemption

$13.61 million

$12.92 million

Maximum estate tax rate

40%

40%

Annual Gift Exclusion

2024

2023

Amount you can give each recipient

$18,000

$17,000

Alternative Minimum Tax exemption

2024

2023

Married filing jointly

$133,300 and begins to phase out at $1,218,700

$126,500 and begins to phase out at $1,156,300

Single

$85,700 and begins to phase out at $609,350

$81,300 and begins to phase out at $$578,150

* Only available for active-duty members of the military.

©  2023