| Maximum Salary Deferrals: | $23,500 for 401(k), 403(b), 501(c), 457 plans; / $16,500 for SIMPLE 'catch-up'contribution limits for age 50+*: additional $7,500 / $3,500 for SIMPLE *'super-catch up' amount for ages 60-63: additional $11,250 / $5,250 for SIMPLE $3,300 for Health FSA $325/monthly transit benefits |
| Self-Employed: | SEP-IRA: $70,000, with limitation of 20% adjusted net s/e income |
| Traditional IRA Contributions Limit: | $7,000 (up to amount of earned income for the year)
additional catch-up $1,000 for age 50+ |
Traditional IRA Deduction MAGI Phaseout: (when also eligible to contribute to a retirement plan at work) |
MFJ, QW: $126,000-$146,000 S, HH: $79,000-$89,000 MFS: 0-$10,000 (living apart all year, see S) MFJ taxpayer when only other spouse covered by a plan: $236,000-$246,000 |
Roth IRA Contributions MAGI Phaseout: |
MFJ, QW: $236,000-$246,000 S, HH: $150,000-$165,000 MFS: 0-$10,000 (living apart all year, see S) |
Retirement Savings Credit ('Saver's Credit') Maximum AGI Limit: |
MFJ: $79,000 HH: $59,250 S, QW, MFS: $39,500 |
| Social Security: |
Before retirement age, can earn up to $23,400 without repaying benefits. Benefits reduced $1 for each $2 earned over limit Preceding months in year of reaching retirement age: $62,160. Benefits reduced $1 for each $3 earned over limit On/after retirement month, no earning limit. Maximum monthly benefits for 2025: $4,108 Earnings subject to SS tax: Employee: $176,100 (maximum $10,918.20 w/h) Household help: cash wages over $2,700 |
| Health Savings Account: | Maximum HSA contribution $4,300 individual coverage / $8,550 family coverage.
additional catch-up $1,000 for age 55+ |
| Child Tax Credit: | $2,00 per child under age 17, with up to $1700 potentially refundable. with phaseout starting at AGI of 400K MFJ, 200K others. $500 credit for other dependents. (TCJA and American Rescue Plan) |
| Child and Dependent Care Expenses/Credit: | Allowed expenses for credit of 3K one child / 6K two or more. Dependent care benefits set-aside 5K Maximum credit $600 (one child) / $1200 (two or more children) |
| Educational Credit: (MFS ineligible) | American Opportunity Credit (aka Hope Credit): 100% of first $2,000, 25% of next $2,000 tuition (all 4 years college) MAGI phaseout: $80,000-$90,000 (individual); $160,000-$180,000 (MFJ) Lifetime Learning Credit: 20% of up to $10,000 tuition (any year college+) MAGI phaseout: $80,000-$90,000 (individual); $160,000-$180,000 (MFJ) |
| Student Loan Interest: (MFS ineligible) | Up to $2,500 MAGI phaseout: $80,000-$95,000 (individual); $165,000-$195,000 (MFJ) |
Earned Income Credit: (MFS ineligible) |
Maximum Earned income/MAGI limit: $19,104 (no children), $50,434 (one child), $56,310 (two children), $61,555 (three children) limits increased for MFJ by $7,110 (no children) else $7,120 Maximum credit will range from $649 for no children up to $8,046 for three or more children. (disqualified if investment income over $11,950, any filing status) |
| Adoption Credit: | Up to $17,280 nonrefundable credit (MAGI phaseout $259,190-$299,190) |
| 'Kiddie Tax' | Child under 18/full-time student under 24, with interest/dividends over $2,700
That portion in excess of $2,700 is taxed at the parents' marginal (top) rate. |
| Standard Mileage Rates: |
Business: 70¢ (Depreciation adjustment: 33¢) Charity: 14¢ Medical: 21¢ |
| Itemized Deduction phaseout: | This has been eliminated. And with no personal exemptions, that phaseout also eliminated. (TCJA). |
| Section 179 Expense: may change w/new tax law |
total limit for tangible personal property placed in service: $1,250,000 phaseout starts at $3.13M placed in service |
| Depreciation Limit (with/without bonus depreciation): | Passenger auto limit, first year business: $31,300 / TBD (likely $22,300)
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| Capital Gain Tax: | Long-term (holding over a year): 0% for taxable income up to $48,350K (S,MFS), $64,750K (HH), $96,700K (MFJ, QW) 15% for next range of taxable income to $533,400 (S), $566,700 (HH), $600,050 (MFJ, QW) or $300,000 (MFS) 20% for taxable income over those amounts. |
| Gift Tax Exclusion/ Estate Exclusion: | $19,000 / $13.990M |
| Foreign Income Exclusion: | $130,000 |
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