Time to Reset Your Tax Clock

 While we may reset our clocks in March and November each year, every January 1 we reset our tax clocks. Here is a short list of what is changing:

• Social Security Wage Base Limit: $176,100

• IRS Standard Mileage Rate: $0.70 per mile

• 401(k) Contribution Limit: $23,500 plus catch-up election of $7,500 for those who are turning or over 50 years old in 2025

• Qualified Transportation Fringe Benefit Monthly Limit (for both parking and mass transit): $325

• Health Flexible Spending Cafeteria Plans Contribution Limit: $3,300

• Qualified Small Employer Health Reimbursement Arrangement Limit: $6,350 ($12,800 Family Coverage)

• Earned Income Tax Credit: $8,046

If you need any assistance with these new limits, please consult your employment tax counsel.

Source(s): Littler, received on December 30, 2024