Inflation Adjusted Amounts

Cross References

Rev. Proc. 2023-34

Notice 2023-75 Each year, a number of provisions in the Internal Revenue Code (IRC) are adjusted for inflation. The IRS recently released the inflation adjusted amounts for 2024. The following chart highlights a number of these adjustments, as they compare to the 2023 and 2022 amounts. A complete list will appear in Tab 1 of the 1040/Deluxe Editions of TheTaxBook.

Tax Provision 2024 2023 2022 Standard deduction – MFJ $29,200 $27,700 $25,900 Standard deduction – Single $14,600 $13,850 $12,950 Standard deduction – HOH $21,900 $20,800 $19,400 Qualifying relative income limit $5,050 $4,700 $4,400 Maximum EIC for 3 or more qualifying children $7,830 $7,430 $6,935 Maximum EIC for 2 qualifying children $6,960 $6,604 $6,164 Maximum EIC for 1 qualifying child $4,213 $3,995 $3,733 Maximum EIC for no qualifying children $632 $600 $560 Section 179 expense limit $1,220,000 $1,160,000 $1,080,000 Section 179 investment limit $3,050,000 $2,890,000 $2,700,000 Section 179 SUV limit $30,500 $28,900 $27,000 Estates basic exclusion amount $13,610,000 $12,920,000 $12,060,000 Annual exclusion for gifts $18,000 $17,000 $16,000 Defined contribution plan contribution limit $69,000 $66,000 $61,000 401(k) elective deferral limit for under age 50 $23,000 $22,500 $20,500 401(k) elective deferral limit for age 50 and older $30,500 $30,000 $27,000 SIMPLE elective deferral limit for under age 50 $16,000 $15,500 $14,000 SIMPLE elective deferral limit for age 50 and older $19,500 $19,000 $17,000 IRA deduction limit for under age 50 $7,000 $6,500 $6,000 IRA deduction limit for age 50 and older $8,000 $7,500 $7,000 Key employee definition for top-heavy plans $220,000 $215,000 $200,000 Highly compensated employee definition $155,000 $150,000 $135,000 Qualified plan compensation limit $345,000 $330,000 $305,000 Child Tax Credit (per qualifying child) $2,000 $2,000 $2,000 Refundable portion of child tax credit $1,700 $1,600 $1,500 QBI threshold amount – MFJ $383,900 $364,200 $340,100 QBI threshold amount – Single & HOH $191,950 $182,100 $170,050 QBI threshold amount – MFS $191,950 $182,100 $170,050 Foreign earned income exclusion $126,500 $120,000 $112,000 AMT exemption – MFJ & QW $133,300 $126,500 $118,100 AMT exemption – Single & HOH $85,700 $81,300 $75,900 AMT exemption – MFS $66,650 $63,250 $59,050