| | 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 |
|
