Nonprofit Resources
Key Federal Tax Figures for 2024
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Several points of interest emerge from a review of the 2024 figures.
Increase in Standard Deduction
The tax reform legislation enacted in December 2017 nearly doubled the standard deduction. For 2024, the new higher amounts increased again by an inflation adjustment. For a married couple filing a joint return, the increase is $1,500, to $29,200. Similar increases occurred for heads of households, single individuals, and married couples filing separate returns.
Automobile Mileage Rates
The tax-free mileage rate for business use of a vehicle increased to 67.0 cents per mile from 65.5 cents per mile, an increase of 1.5 cents per mile from 2023.
The tax-deductible mileage rate for medical mileage decreased slightly to 21.0 cents per mile, a decrease of 1.0 cent from 2023. The mileage rate for charitable mileage remained unchanged at 14.0 cents per mile. Note that with the suspension of the moving expense deduction, there is no mileage reimbursement rate for moving mileage.
Other Inflation Adjustments for 2024
Inflation adjustments affect many areas, but not everything. Examine the specific issues that affect your organization carefully. Some examples may include:
| In 2023 and Returns for 2023 | In 2024 and Returns for 2024 | |
|---|---|---|
| Foreign earned income exclusion | $120,000 | $126,500 |
| OASDI maximum wage base | $160,200 | $168,600 |
| Maximum annual contribution to defined contribution plan | $66,000 | $69,000 |
| Maximum salary deduction for 401(k)/403(b) | $22,500 | $23,000 |
| Maximum income inclusion for NQ plans in 501(c)(3) organizations | $22,500 | $23,000 |
| IRA contribution limit | $6,500 | $7,000 |
| Maximum automobile value for using cents-per-mile rate | $60,800 | $62,000 |
| Highly compensated employee limit | $150,000 | $155,000 |
| Annual gift tax exclusion amount | $17,000 | $18,000 |
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