HOME | RESOURCES
Quick Tax Facts
So many questions, so little time. Managing a business and staying on top of accounting can seem overwhelming. Here are answers to some of our clients’ most common questions.
We’ll update this Q&A to keep information current, so check back regularly.
If you have a question that’s not on the list, count on Scribner Cohen for a quick answer. Click here to contact us.
Mileage Rates
| 2023 | 2024 | |
|---|---|---|
| Business | 65.5¢/mi | 67¢/mi |
| Relocation | 22¢/mi | 21¢/mi |
| Charitable | 14¢/mi | 14¢/mi |
| Medical | 22¢/mi | 21¢/mi |
Election to Expense Certain Depreciable Business Assets (Sec 179)
| Election | 2023 | 2024 |
|---|---|---|
| Federal | $1,160,000 | $1,160,000* |
| State | $1,160,000 | $1,160,000* |
*Index for inflation
Payroll Taxes
Social Security recipients under age 65 who have earnings in excess of the annual exemption amount are subject to a $1 reduction in benefits for each $2 of earnings in excess of the exempt amount. Recipients turning age 65 with earnings in excess of the annual exemption are subject to a $1 reduction in benefits for each $3 earned over the exempt amount.(Only applies to earnings for months prior to attaining 65)
| Payroll Tax | 2023 | 2024 |
|---|---|---|
| FICA: Soc.Sec.&Medicare (Self-employed) | 15.30% | 15.30% |
| FICA: Soc.Sec.&Medicare (Employer) | 7.65% | 7.65% |
| FICA: Soc.Sec.&Medicare (Employee) | 7.65% | 7.65% |
| Social Security Taxable Wage Base | $160,200 | $168,600 |
| FUTA Wage Base | $7,000 | $7,000 |
| SUTA Wage Base – Wisconsin | $14,000 | $14,000 |
Retirement Plans
| Retirement Plan | 2023 | 2024 |
|---|---|---|
| Maximum Annual Benefit for Defined Benefit Plan | $265,000 | $275,000 |
| Maximum Annual Contribution Defined Contribution Plan | $66,000 | $69,000 |
| Highly Comprensated Employee Definition(In general) | $150,000 | $150,000 |
| SEP De minimis Compensation Amount | $750 | $750 |
| SEP Nondiscrimination Compensation Amount | $330,000 | $345,000 |
| 401 (k) Maximum Compensation Amount | $330,000 | $345,000 |
| 401 (k) Maximum Exclusion | $22,500 | $23,000 |
| 401 (k), 403(b), and 457 Plans Catch Ups | $7,500 | $7,500 |
| IRA Deduction/Roth IRA Contribution Limit(In general) | $4,500 | $7,000 |
| IRA Catch Up 50 and older | $1,000 | $1,000 |
| SIMPLE Contribution Limit | $15,500 | $16,000 |
| SIMPLE Catch Up 50 and older | $3,500 | $3,500 |
Earnings Limitations for Recipients of Social Security Benefits
Social Security recipients under age 70 who have earnings in excess of an annual exemption amount are subject to a reduction in Social Security benefits. The table below lists the amounts that recipients of social security benefits can earn without suffering a reduction in benefits.
| Earnings limitations for recipients | 2023 | 2024 |
|---|---|---|
| Age 62 to Full Retirement Age | $21,240 ann. | $22,370 ann. |
| Year Turning Full Retirement Age | $56,520 ann. | $59,520 ann. |
| Full Retirement Age and older | No earnings limit | No earnings limit |
Standard Deductions
| Standard Deduction | 2023 | 2024 |
|---|---|---|
| Joint filers and surviving spouses | $27,700 | $29,200 |
| Heads of household | $20,800 | $21,900 |
| Single filers | $13,850 | $14,600 |
| Married filing separately | $13,850 | $14,600 |
Elderly and/or Blind Taxpayers
Taxpayers who are age 65 or older or who are blind receive an additional standard deduction amount that is added to the basic standard deduction listed above. To, qualify for the additional standard deduction amount, a taxpayer must be age 65 (or blind) before the close of his tax year. Two additional amounts will be allowed to an individual who is both over 65 and blind. The additional standard deduction amounts are:
| Elderly or Blind Taxpayers | 2023 | 2024 |
|---|---|---|
| Married and surviving spouses | $1,500 | $1,550 |
| Heads of household | $1,850 | $1,950 |
| Singles | $1,850 | $1,950 |