ARTICLE
7 January 2025

Time To Reset Your Tax Clock

LM
Littler Mendelson

Contributor

With more than 1,800 labor and employment attorneys in offices around the world, Littler provides workplace solutions that are local, everywhere. Our diverse team and proprietary technology foster a culture that celebrates original thinking, delivering groundbreaking innovation that prepares employers for what’s happening today, and what’s likely to happen tomorrow
While we may reset our clocks in March and November each year, every January 1 we reset our tax clocks.
United States Tax

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

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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