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Employees, self-employed people and employers pay Social Security tax. If you’re an employee, your wages are hit with the 12.4% Social Security tax up to the annual wage ceiling. Half of the Social Security tax (6.2%) is withheld from your paychecks. The other half (also 6.2%) is paid by your employer, so you never actually see it. The Social Security tax wage ceiling for 2024 is $168,600 (up from $160,200 […]

In the midst of the holiday whirlwind, don’t forget to take steps to cut the 2023 tax liability for your business. There’s still time to implement a few strategies. For example, you can charge expenses normally paid early in the year on your credit card before Jan. 1. That way, you can claim the deduction for 2023 even though you don’t pay the bill until 2024. Are you thinking about […]

If you have a tax-saving flexible spending account (FSA) with your employer to help pay for health or dependent care expenses, it’s a good time to review 2023 expenses. A pre-tax contribution of $3,050 to a health FSA is permitted in 2023. This is increasing to $3,200 for 2024. To avoid forfeiting your health FSA funds because of a “use-it-or-lose-it” rule, you must make eligible medical expenditures by the last […]

The IRS recently announced various inflation-adjusted federal income tax amounts for next year, including those for Section 179 deductions. For tax years beginning in 2024, small businesses can potentially write off up to $1,220,000 of qualified asset additions in year one (up from $1,160,000 for 2023). However, the maximum deduction amount begins to be phased out once qualified asset additions exceed $3,050,000 (up from $2,890,000 for 2023). Various limitations apply […]

The IRS recently announced various 2024 inflation-adjusted federal tax amounts that affect individual taxpayers. Here are the inflation-adjusted standard deduction numbers for 2024 for those who don’t itemize: $14,600 for single filers (up from $13,850 in 2023); $29,200 for married joint filers (up from $27,700); and $21,900 for heads of household (up from $20,800). Older taxpayers and those who are blind are entitled to additional standard deduction allowances. In 2024 […]