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