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