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.
@2024