Tax Frequently Asked Questions
What information do I need for the preparation of my tax return?
Visit the page on tax preparation services to see the forms required for tax preparation.
What is the mileage rate?
See the mileage rate tax updates section.
How much can I contribute to my retirement?
See our retirement contributions tax updates. Do you need help establishing or determining a retirement plan? Find more information on the IRS website.
Additional Information
For additional questions or information use www.irs.gov.
What are the eligible education expenses for education credits?
See more at https://www.irs.gov/credits-deductions/individuals/qualified-ed-expenses.
Tax Pre-Planning
Schedule A Itemized Deductions:
Donations — Cash contributions are no longer accepted as deduction unless you have a valid receipt for verification.
Gifts:
| 2024 | $18,000/year or $36,000/year if spouse agrees |
| 2023 | $16,000/year or $32,000/year if spouse agrees |
| 2022 | $16,000/year or $32,000/year if spouse agrees |
Tax Updates
Here you’ll find relevant tax updates and information for the current and prior tax years.
- Social Security Wage Base
- Maximum Retirement Contributions
- Defined Contribution Plan
- Defined Benefit Plan
- Auto Standard Mileage Allowances
- Section 179
- Health Savings Account (HSA) Contributions
Social Security Wage Base
| 2024 | $168,600 |
| 2023 | $160,200 |
| 2022 | $147,000 |
Maximum Retirement Contributions
| 401(k) | 2024 = $23,000, add’l $7,500 if over age 50 2023 = $22,500, add’l $7,500 if over age 50 2022 = $20,500, add’l $6,500 if over age 50 |
| Simple | 2023 = $16,000, add’l $3,500 if over age 50 2023 = $15,500, add’l $3,500 if over age 50 2022 = $14,000, add’l $3,000 if over age 50 |
| IRA | (Adjusted Gross Income phase-out ranges apply for tax deduction qualification) 2024 = $7,000, add’l $1,000 if over age 50 2023 = $6,500, add’l $1,000 if over age 50 2022 = $6,000, add’l $1,000 if over age 50 |
| Roth IRA | (Adjusted Gross Income phase-out ranges apply) 2024 = $7,000, add’l $1,000 if over age 50 2023 = $6,500, add’l $1,000 if over age 50 2022 = $6,000, add’l $1,000 if over age 50 |
| SEP | 2024 = lesser of $69,000 or 25% of employee’s compensation 2023 = lesser of $66,000 or 25% of employee’s compensation 2022 = lesser of $61,000 or 25% of employee’s compensation |
Defined Contribution Plan
Defined contribution plan’s annual contributions and other additions (excluding earnings) to the account of a participant cannot exceed:
| 2024 | lesser of $69,000 or 25% of employee’s compensation |
| 2023 | lesser of $66,000 or 25% of employee’s compensation |
| 2022 | lesser of $57,000 or 25% of employee’s compensation |
Defined Benefit Plan
The annual benefit for a participant under a defined benefit plan cannot exceed:
| 2023 | $275,000 |
| 2023 | $265,000 |
| 2022 | $245,000 |
Auto Standard Mileage Allowances
| Business | 2023 = 62.5 cents 2022 = 58.5 cents 2021 = 56.0 cents |
| Medical or Moving | 2023 = 18.0 cents 2022 = 18.0 cents 2021 = 16.0 cents |
| Charitable | 2023 = 14.0 cents 2022 = 14.0 cents 2021 = 14.0 cents |
Section 179
Maximum Depreciation Deduction:
| 2023 | $1,160,000 |
| 2022 | $1,080,000 |
| 2021 | $1,050,000 |
Bonus Depreciation:
| 2023 | 100% |
| 2022 | 100% |
| 2021 | 100% |
Health Savings Account (HSA) Contributions
HSA limits for Individual
| Minimum deductable | Maximum out of pocket | Contribution Limit | 55+ Additional Contribution | |
|---|---|---|---|---|
| 2024 | $1,600 | $8,050 | $4,150 | $1,000 |
| 2023 | $1,500 | $7,500 | $3,850 | $1,000 |
| 2022 | $1,400 | $7,050 | $3,650 | $1,000 |
HSA limits for Family
| Minimum deductable | Maximum out of pocket | Contribution Limit | 55+ Additional Contribution | |
|---|---|---|---|---|
| 2024 | $3,200 | $16,100 | $8,300 | $1,000 |
| 2023 | $3,000 | $15,000 | $7,750 | $1,000 |
| 2022 | $2,800 | $14,100 | $7,300 | $1,000 |
What is HSA?
A health savings account (HSA) is a tax-favored savings account created for the purpose of paying medical expenses.
- Tax-deductible
Contributions to the HSA are 100% deductible (up to the legal limit) — just like an IRA. - Tax free
Withdrawals to pay qualified medical expenses are never taxed. - Tax-deferred
Interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free. - HSA money is yours to keep
Unlike a Flexible Spending Account, unused money in your HSA isn’t forfeited at the end of the year; it continues to grow, tas deferred.
Go to the IRS website for additional information on an HSA.
Any U.S. tax advice contained in the body of this web site was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.