The following changes are in
effect for 2024 (Ref: IRS Revenue Procedure 2023-34, IRS Notice
2023-75):
Social
Security Wage Base: $168,600 (5.24% increase)
Kiddie
Tax: For 2024, the first $1,300 of a child’s
unearned income is tax-free. The
next $1,300 is taxed at the child’s rate. Unearned income above $2,600 will
be taxed at the same rate as the parent’s rate.
Child
Tax Credit: The maximum credit is
$2,000, and the refundable portion is $1,700. Children older than age 16 do not
qualify for this credit.
Deduction
for State and Local Taxes: $10,000 (No change - limited by TCJA)
Employer Retirement Plans and Other Plan Limits:
|
Elective Deferral Limit for 401(k), 403(b),
and 457 Plans |
$23,000 |
|
Catch-up Contribution Limit for 401(k),
403(b), and 457 Plans |
$7,500 |
|
Defined Contribution Plan Annual Additions Limit |
$69,000 |
|
Retirement Plan Annual Compensation Limit |
$345,000 |
|
Definition of Highly Compensated Employee |
$155,000 |
|
Definition of Key Employee |
$220,000 |
|
SEP Minimum Compensation Threshold for Participation |
$750 |
|
SEP Contribution Limit |
$69,000 |
|
SIMPLE Pre-tax Contribution Limit |
$16,000 |
|
SIMPLE Catch-up Contribution Limit |
$3,500 |
|
FSA Contribution Limit |
$3,200 |
|
IRA Contribution Limit |
$7,000 |
|
IRA Catch Up Contribution Limit |
$1,000 |
|
FSA Carryover Limit |
$640 |
|
HSA Contribution Limit – Family |
$10,200 |
|
HSA Contribution Limit – Single |
$5,550 |
Tax Rate Schedules and Tax
Brackets
|
Tax Rate |
Single |
Married Joint |
Married Separate |
Head of Household |
|
10% |
$0 - $11,600 |
$0 - $23,200 |
$0 - $11,600 |
$0 - $16,550 |
|
12% |
$11,601 - $47,150 |
$23,201 - $94,300 |
$11,601 - $47,150 |
$16,551 - $63,100 |
|
22% |
$47,151 - $100,525 |
$94,301 - $201,050 |
$47,151 - $100,525 |
$63,101 - $100,050 |
|
24% |
$100,526 - $191,950 |
$201,051 - $383,900 |
$100,526 - $191,950 |
$100,051 - $191,950 |
|
32% |
$191,951 - $243,725 |
$383,901 - $487,450 |
$191,951 - $243,725 |
$191,951 - $243,700 |
|
35% |
$243,726 - $609,350 |
$487,451 - $731,200 |
$243,726 – $365,600 |
$243,701 - $609,350 |
|
37% |
Over $609,350 |
Over $731,200 |
Over $365,600 |
Over $609,350 |
Capital Gains Tax Brackets for Individuals
|
Tax Rate |
Unmarried, Taxable Income Up To |
Married Joint Returns, Taxable Income Up To |
Heads of Households, Taxable Income Up To |
|
0% |
$47,025 |
$94,050 |
$63,000 |
|
15% |
$518,900 |
$583,750 |
$551,350 |
|
20% |
Over $518,900 |
Over $583,750 |
Over $551,350 |
Tax Rate |
Taxable Income |
10% |
$0 - $3,100 |
24% |
$3,101 - $11,150 |
35% |
$11,151 – 15,200 |
37% |
Over $15,200 |
Capital Gains Tax Brackets for
Estates and Trusts
Tax Rate |
Taxable Income Up To |
0% |
$0 - $3,150 |
15% |
$3,151 - $15,450 |
20% |
Over $15,451 |
Filing Status |
Standard Deduction |
MFJ or Surviving Spouse |
$29,200 |
Single (other than HoH or Surviving Spouse) |
$14,600 |
Head of Household |
$21,900 |
Estate and Gift Tax Exclusion: $13,610,000
Annual Gift Tax
Exclusion: $18,000