| | | | Business Planning
Adoption Assistance Programs
| Adoption assistance | 2024 | 2025 |
|---|
| Maximum amount that can be excluded
from employee's gross income | $16,810 | $17,280 | | Phaseout threshold
amount | $252,150 | $259,190 | | Completed phaseout amount
after | $292,150 | $299,190 |
Earnings subject to FICA taxes (taxable wage base)
| FICA tax | 2024 | 2025 |
|---|
| Maximum annual earnings subject to
Social Security taxes | $168,600 | $176,100
| | Social Security and Medicare combined
tax rate | 15.30%1 | 15.30%1 | | OASDI portion (Social
Security) | 12.40% | 12.40% | | Hospital Insurance portion
(Medicare) | 2.90%1 | 2.90%1 |
1 An additional Medicare (HI) employee contribution rate of 0.9% (for a total employee contribution of 2.35%, and a total combined Medicare contribution rate of 3.8%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). For married individuals filing joint returns, the additional 0.9% tax applies to the couples combined wages (to the extent the combined wages exceed $250,000). Health insurance deduction for self-employed
| Health insurance premiums | 2024 | 2025 |
|---|
| Deduction for health insurance
premiums paid by self-employed persons | 100% | 100% |
Qualified transportation fringe benefits
| Qualified transportation fringe benefits | 2024 | 2025 |
|---|
| Commuter vehicles and transit pass
monthly exclusion amount | $315 | $325 | | Qualified parking monthly exclusion
amount | $315 | $325 | | Qualified bicycle commuting
reimbursement fringe benefit (monthly amount) | N/A | N/A |
Section 179 expensing
| Section 179 expensing
| 2024 | 2025 |
|---|
| Maximum amount that may be deducted
under IRC Section 179 | $1,220,000 | $1,250,000 | | Deduction reduced by the amount by
which the cost of §179 property placed in service during the year exceeds this
amount | $3,050,000 | $3,130,000 |
Small business tax credit for providing health-care
coverage
| Amount of credit | 2024 | 2025 |
|---|
| Maximum credit
percentage | 50% | 50% |
| Partial credit | 2024 | 2025 |
|---|
| Number of full-time equivalent
employees (FTEs) fewer than: | 25 | 25 | | Maximum average annual wages less
than: | $64,800 | $66,600 |
| Full credit | 2024 | 2025 |
|---|
| Number of full-time equivalent
employees (FTEs) no more than: | 10 | 10 | | Maximum average annual wages less
than or equal to: | $32,400 | $33,300 |
Special additional first-year depreciation allowance
| Bonus depreciation | 2024 | 2025 |
|---|
| "Bonus" depreciation for qualified
property acquired and placed in service during specified time
periods | 60% | 40% |
Standard mileage rate (per
mile) | Business use of auto | 2024 | 2025 |
|---|
| Use of auto for business
purposes | $0.67 | 0.70 |
|
| | | | | The information contained herein is based on sources believed to be reliable, but its accuracy cannot be guaranteed. The articles, information, calculators, and opinions presented herein are for general information only and are not intended to provide specific advice or recommendations for any individual. New Capital Management does not provide tax, accounting, or legal advice. All decisions regarding the tax or legal implications of your investments and finances should be made with your tax or legal advisor. New Capital Management is not a bank, mortgage lender, or broker. Nothing herein should be construed as an offer or commitment to lend. Any calculations are provided as educational tools, are hypothetical in nature, depend wholly on information you provide, do not assume the effects of all pertinent factors, and are not intended to provide investment advice or serve as a financial plan.
This communication is strictly intended for individuals residing in the state(s) of TX. No offers may be made or accepted from any resident outside the specific states referenced. | | Prepared by Broadridge Advisor Solutions Copyright 2025. |
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