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.
