Smedley Financial Services, Inc.®

Private Wealth Management Team Advisors
102 S 200 E Suite 100
PO Box 4133
Salt Lake City, UT 84110-4133
801-355-8888
800-748-4788
800-748-4788
info@smedleyfinancial.com
www.SmedleyFinancial.com

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August 01, 2023

2023 Key Numbers
 

Business Planning

Adoption Assistance Programs

Adoption assistance20232024
Maximum amount that can be excluded from employee's gross income$15,590$16,810
Phaseout threshold amount$239,230$252,150
Completed phaseout amount after$279,230$292,150

Earnings subject to FICA taxes (taxable wage base)

FICA tax20232024
Maximum annual earnings subject to Social Security taxes$160,200 $168,600
Social Security and Medicare combined tax rate15.30%115.30%1
OASDI portion (Social Security)12.40%12.40%
Hospital Insurance portion (Medicare)2.90%12.90%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 premiums20232024
Deduction for health insurance premiums paid by self-employed persons100%100%

Qualified transportation fringe benefits

Qualified transportation fringe benefits20232024
Commuter vehicles and transit pass monthly exclusion amount$300$315
Qualified parking monthly exclusion amount$300$315
Qualified bicycle commuting reimbursement fringe benefit (monthly amount)N/AN/A

Section 179 expensing

Section 179 expensing 20232024
Maximum amount that may be deducted under IRC Section 179$1,160,000$1,220,000
Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount$2,890,000 $3,050,000

Small business tax credit for providing health-care coverage

Amount of credit20232024
Maximum credit percentage50%50%
Partial credit20232024
Number of full-time equivalent employees (FTEs) fewer than:2525
Maximum average annual wages less than:$61,400$64,800
Full credit20232024
Number of full-time equivalent employees (FTEs) no more than:1010
Maximum average annual wages less than or equal to:$30,700$32,400

Special additional first-year depreciation allowance

Bonus depreciation20232024
"Bonus" depreciation for qualified property acquired and placed in service during specified time periods80%60%

Standard mileage rate (per mile)

Business use of auto20232024
Use of auto for business purposes$0.655$0.67
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Securities offered through Securities America, Inc., Member FINRA/SIPC. Roger M. Smedley, CFP®, Sharla J. Jessop, CFP®, James R. Derrick, CFA,  Mikal B. Aune, CFP®, Jordan R. Hadfield, CFP®, and Shane P. Thomas, Registered Representatives and Registered Investment Advisor Representatives of Smedley Financial Services, Inc.® Smedley Financial Services, Inc.®, and Securities America, Inc. are separate entities. Securities America and its representatives do not provide tax or legal advice. Please consult the appropriate professionals regarding your personal situation.

Prepared by Broadridge Advisor Solutions Copyright 2024.