Friday July 12, 2024

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2024 Tax Tables, Exemptions and Deductions

Rev. Proc. 2023-34; 2023-48 IRB 1

Part III

Administrative, Procedural, and Miscellaneous

26 CFR 601.602: Tax forms and instructions.


(Also Part I, 1, 23, 24, 32, 36B, 42, 45R, 55, 59, 62, 63, 125, 132(f), 135, 137, 146, 147, 148, 152, 179, 179D, 199A, 213, 220, 221, 448, 461, 512, 513, 642, 831, 877, 877A, 911, 1274A, 2010, 2032A, 2503, 2523, 4161, 4261, 4611, 6033, 6039F, 6323, 6334, 6601, 6651, 6652, 6695, 6698, 6699, 6721, 6722, 7345, 7430, 7702B, 9831; 1.148-5.)

Table of Contents
SECTION 1. PURPOSE

SECTION 2. CHANGES

SECTION 3. 2024 ADJUSTED ITEMS

Code Section1

.01 Tax Rate Tables1(j)(2) (A)-(D)
.02 Unearned Income of Minor Children Subject to the “Kiddie Tax”1(g)
.03 Maximum Capital Gains Rate1(h)
.04 Adoption Credit23
.05 Child Tax Credit24
.06 Earned Income Credit32
.07 Refundable Credit for Coverage Under a Qualified Health Plan36B(f)(2)(B)
.08 Rehabilitation Expenditures Treated as Separate New Building42(e)
.09 Low-Income Housing Credit42(h)
.10 Employee Health Insurance Expense of Small Employers45R
.11 Exemption Amounts for Alternative Minimum Tax55
.12 Alternative Minimum Tax Exemption for a Child Subject to the “Kiddie Tax”59(j)
.13 Certain Expenses of Elementary and Secondary School Teachers62(a)(2)(D)
.14 Transportation Mainline Pipeline Construction Industry Optional Expense Substantiation Rules for Payments to Employees Under Accountable Plans62(c)
.15 Standard Deduction63
.16 Cafeteria Plans125
.17 Qualified Transportation Fringe Benefit132(f)
.18 Income from United States Savings Bonds for Taxpayers Who Pay Qualified Higher Education Expenses135
.19 Adoption Assistance Programs137
.20 Private Activity Bonds Volume Cap146(d)
.21 Loan Limits on Agricultural Bonds147(c)(2)
.22 General Arbitrage Rebate Rules148(f)
.23 Safe Harbor Rules for Broker Commissions on Guaranteed Investment Contracts or Investments Purchased for a Yield Restricted Defeasance Escrow148
.24 Gross Income Limitation for a Qualifying Relative152(d)(1)(B)
.25 Election to Expense Certain Depreciable Assets179
.26 Energy Efficient Commercial Buildings Deduction179D
.27 Qualified Business Income199A
.28 Eligible Long-Term Care Premiums213(d)(10)
.29 Medical Savings Accounts220
.30 Interest on Education Loans221
.31 Limitation on Use of Cash Method of Accounting448
.32 Threshold for Excess Business Loss461(l)
.33 Treatment of Dues Paid to Agricultural or Horticultural Organizations512(d)
.34 Insubstantial Benefit Limitations for Contributions Associated With Charitable Fund-Raising Campaigns513(h)
.35 Special Rules for Credits and Deductions642
.36 Tax on Insurance Companies Other than Life Insurance Companies831
.37 Expatriation to Avoid Tax877
.38 Tax Responsibilities of Expatriation877A
.39 Foreign Earned Income Exclusion911
.40 Debt Instruments Arising Out of Sales or Exchanges1274A
.41 Unified Credit Against Estate Tax2010
.42 Valuation of Qualified Real Property in Decedent's Gross Estate2032A
.43 Annual Exclusion for Gifts2503; 2523
.44 Tax on Arrow Shafts4161
.45 Passenger Air Transportation Excise Tax4261
.46 Tax on Certain Uses of Crude Oil and Petroleum Products4611
.47 Reporting Exception for Certain Exempt Organizations with Nondeductible Lobbying Expenditures6033(e)(3)
.48 Notice of Large Gifts Received from Foreign Persons6039F
.49 Persons Against Whom a Federal Tax Lien Is Not Valid6323
.50 Property Exempt from Levy6334(a)
.51 Exempt Amount of Wages Salary or Other Income6334(d)
.52 Interest on a Certain Portion of the Estate Tax Payable in Installments6601(j)
.53 Failure to File Tax Return6651
.54 Failure to File Certain Information Returns Registration Statements etc.6652
.55 Other Assessable Penalties With Respect to the Preparation of Tax Returns for Other Persons6695
.56 Failure to File Partnership Return6698
.57 Failure to File S Corporation Return6699
.58 Failure to File Correct Information Returns6721
.59 Failure to Furnish Correct Payee Statements6722
.60 Revocation or Denial of Passport in Case of Certain Tax Delinquencies7345
.61 Attorney Fee Awards7430
.62 Periodic Payments Received Under Qualified Long-Term Care Insurance Contracts or Under Certain Life Insurance Contracts7702B(d)
.63 Qualified Small Employer Health Reimbursement Arrangement9831

SECTION 4. EFFECTIVE DATE

SECTION 5. DRAFTING INFORMATION

SECTION 1. PURPOSE
This revenue procedure sets forth inflation-adjusted items for 2024 for various Code provisions as in effect on November 9, 2023. The inflation adjusted items for the Code sections set forth in section 3 of this revenue procedure are generally determined by reference to 1(f). To the extent amendments to the Code are enacted for 2024 after November 9, 2023, taxpayers should consult additional guidance to determine whether these adjustments remain applicable for 2024.

SECTION 2. CHANGES
.01 For calendar years beginning on or after January 1, 2023, 13601(a)(2) of Public Law 117-169, 136 Stat. 1818 (August 16, 2022), commonly known as the Inflation Reduction Act of 2022 (IRA), reinstates the Hazardous Substance Superfund financing rate for crude oil received at a United States refinery and petroleum products entered into the United States for consumption, use, or warehousing under 4611. The rate of tax imposed by 4611 is the sum of the Hazardous Substance Superfund rate and the Oil Spill Liability Trust Fund financing rate. In the case of crude oil or petroleum products entered after December 31, 2016, for calendar years beginning in 2023, the rate of tax imposed by 4611(a) is $0.254 cents a barrel.

.02 The Hazardous Substance Superfund financing rate described in section 2.01 of this revenue procedure is adjusted for inflation for calendar years beginning in 2024.

SECTION 3. 2024 ADJUSTED ITEMS
.01 Tax Rate Tables. For taxable years beginning in 2024, the tax rate tables under 1 are as follows:

TABLE 1 — Section 1(j)(2)(A) — Married Individuals Filing Joint Returns and Surviving Spouses

If Taxable Income Is:The Tax Is:
Not over $23,20010% of the taxable income
Over $23,200 but not over $94,300$2,320 plus 12% of the excess over $23,200
Over $94,300 but not over $201,050$10,852 plus 22% of the excess over $94,300
Over $201,050 but not over $383,900$34,337 plus 24% of the excess over $201,050
Over $383,900 but not over $487,450$78,221 plus 32% of the excess over $383,900
Over $487,450 but not over $731,200$111,357 plus 35% of the excess over $487,450
Over $731,200$196,669.50 plus 37% of the excess over $731,200

TABLE 2 — Section 1(j)(2)(B) – Heads of Households

If Taxable Income Is:The Tax Is:
Not over $16,55010% of the taxable income
Over $16,550 but not over $63,100$1,655 plus 12% of the excess over $16,550
Over $63,100 but not over $100,500$7,241 plus 22% of the excess over $63,100
Over $100,500 but not over $191,950<$15,469 plus 24% of the excess over $100,500
Over $191,950 but not over $243,700$37,417 plus 32% of the excess over $191,150
Over $243,700 but not over $609,350$53,977 plus 35% of the excess over $243,700
Over $609,350$181,954.50 plus 37% of the excess over $609,350

TABLE 3 — Section 1(j)(2)(C) — Unmarried Individuals (other than Surviving Spouses and Heads of Households)

If Taxable Income Is:The Tax Is:
Not over $11,60010% of the taxable income
Over $11,600 but not over $47,150$1,160 plus 12% of the excess over $11,600
Over $47,150 but not over $100,525$5,426 plus 22% of the excess over $47,150
Over $100,525 but not over $191,950$17,168.50 plus 24% of the excess over $100,525
Over $191,950 but not over $243,725$39,110.50 plus 32% of the excess over $191,150
Over $243,725 but not over $609,350$55,678.50 plus 35% of the excess over $243,725
Over $609,350$183,647.25 plus 37% of the excess over $609,350

TABLE 4 — Section 1(j)(2)(D) — Married Individuals Filing Separate Returns

If Taxable Income Is:The Tax Is:
Not over $11,60010% of the taxable income
Over $11,600 but not over $47,150$1,160 plus 12% of the excess over $11,600
Over $47,150 but not over $100,525$5,426 plus 22% of the excess over $47,150
Over $100,525 but not over $191,950$17,168.50 plus 24% of the excess over $100,525
Over $191,950 but not over $243,725$39,110.50 plus 32% of the excess over $191,150
Over $243,725 but not over $365,600$55,678.50 plus 35% of the excess over $243,725
Over $365,600$98,334.75 plus 37% of the excess over $365,600

TABLE 5 — Section 1(j)(2)(E) — Estates and Trusts

If Taxable Income Is:The Tax Is:
Not over $3,10010% of the taxable income
Over $3,100 but not over $11,150$310 plus 24% of the excess over $3,100
Over $11,150 but not over $15,200$2,242 plus 35% of the excess over $11,150
Over $15,200$3,659.50 plus 37% of the excess over $15,200

.02 Unearned Income of Minor Children Subject to the "Kiddie Tax". For taxable years beginning in 2024, the amount in 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income reported on the child's return that is subject to the "kiddie tax," is $1,300. This $1,300 amount is the same as the amount provided in 63(c)(5)(A), as adjusted for inflation. The same $1,300 amount is used for purposes of 1(g)(7) to determine whether a parent may elect to include a child's gross income in the parent's gross income and to calculate the "kiddie tax." For example, one of the requirements for the parental election is that a child's gross income is more than the amount referenced in 1(g)(4)(A)(ii)(I) but less than 10 times that amount; thus, a child's gross income for 2024 must be more than $1,300 but less than $13,000.

.03 Maximum Capital Gains Rate (1(h), 1(j)(5)). For taxable years beginning in 2024, the maximum zero rate amounts and maximum 15 percent rate amounts under 1(j)(5)(B), as adjusted for inflation, are as follows:

Filing StatusMaximum Zero Rate AmountMaximum 15% Rate Amount
Married Individuals Filing Joint Returns and Surviving Spouse$94,050$583,750
Married Individuals Filing Separate Returns$47,025$291,850
Heads of Household$63,000$551,350
All Other Individuals$47,025$518,900
Estates and Trusts$3,150$15,450

.04 Adoption Credit. For taxable years beginning in 2024, under 23(a)(3) the credit allowed for an adoption of a child with special needs is $16,810. For taxable years beginning in 2024, under 23(b)(1) the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $16,810. The available adoption credit begins to phase out under 23(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $252,150 and is completely phased out for taxpayers with modified adjusted gross income of $292,150 or more. See section 3.19 of this revenue procedure for the adjusted items relating to adoption assistance programs.

.05 Child Tax Credit. For taxable years beginning in 2024, the amount used in 24(d)(1)(A) to determine the amount of credit under 24 that may be refundable is $1,700.

.06 Earned Income Credit.

(1) In general. For taxable years beginning in 2024, the following amounts are used to determine the earned income credit under 32(b). The "earned income amount" is the amount of earned income at or above which the maximum amount of the earned income credit is allowed. The "threshold phaseout amount" is the amount of adjusted gross income (or, if greater, earned income) above which the maximum amount of the credit begins to phase out. The "completed phaseout amount" is the amount of adjusted gross income (or, if greater, earned income) at or above which no credit is allowed. The threshold phaseout amounts and the completed phaseout amounts shown in the table below for married taxpayers filing a joint return include the increase provided in 32(b)(2)(B), as adjusted for inflation for taxable years beginning in 2024. The threshold phaseout amounts and the completed phaseout amounts shown in the table below for taxpayers with all other filing statuses also apply to married taxpayers who are not filing a joint return and satisfy the special rules for separated spouses in 32(d).

ItemOneTwoThree or MoreNone
Earned Income Amount$12,390$17,400$17,400$8,260
Maximum Amount of Credit$4,213$6,960$7,830$632
Threshold Phaseout Amount (Single, Surviving Spouse, or Head of Household)$29,640$29,640$29,640$17,250
Completed Phaseout Amount (Single, Surviving Spouse, or Head of Household)$56,004$62,688$66,819$25,511
Threshold Phaseout Amount (Married Filing Jointly)$22,720$22,720$22,720$10,330
Completed Phaseout Amount (Married Filing Jointly)$49,084$55,768$59,899$18,591


The instructions for the Form 1040 series provide tables showing the amount of the earned income credit for each type of taxpayer.

(2) Excessive Investment Income. For taxable years beginning in 2024, the earned income tax credit is not allowed under 32(i) if the aggregate amount of certain investment income exceeds $11,600.

.07 Refundable Credit for Coverage Under a Qualified Health Plan. For taxable years beginning in 2024, the limitation on tax imposed under 36B(f)(2)(B) for excess advance credit payments is determined using the following table:

If the household income (expressed as a percent of poverty line) is:The limitation amount for unmarried individuals (other than surviving spouses and heads of household) is:The limitation amount for all other taxpayers is:
Less than 200%$375$750
At least 200% but less than 300%$950$1,900
At least 300% but less than 400%$1,575$3,150

.08 Rehabilitation Expenditures Treated as Separate New Building. For calendar year 2024, the per low-income unit qualified basis amount under 42(e)(3)(A)(ii)(II) is $8,300.

.09 Low-Income Housing Credit. For calendar year 2024, the amount used under 42(h)(3)(C)(ii) to calculate the State housing credit ceiling for the low-income housing credit is the greater of (1) $2.90multiplied by the State population, or (2) $3,360,000.

.10 Employee Health Insurance Expense of Small Employers. For taxable years beginning in 2024, the dollar amount in effect under 45R(d)(3)(B) is $32,400. This amount is used under 45R(c) for limiting the small employer health insurance credit and under 45R(d)(1)(B) for determining who is an eligible small employer for purposes of the credit.

.11 Exemption Amounts for Alternative Minimum Tax. For taxable years beginning in 2024, the exemption amounts under 55(d)(1) are:

Joint Returns or Surviving Spouses$133,300
Unmarried Individuals (other than Surviving Spouses)$85,700
Married Individuals Filing Separate Returns$66,650
Estates and Trusts$29,900

For taxable years beginning in 2024, under 55(b)(1), the excess taxable income above which the 28 percent tax rate applies is:

Married Individuals Filing Separate Returns$116,300
All Other Taxpayers$232,600

For taxable years beginning in 2024, the amounts used under 55(d)(2) to determine the phaseout of the exemption amounts are:

Threshold Phaseout AmountComplete Phaseout Amount
Joint Returns or Surviving Spouses$1,218,700$1,751,900
Unmarried Individuals (other than Surviving Spouses)$609,350$952,150
Married Individuals Filing Separate Returns$609,350$875,950
Estates and Trusts$99,700$219,300


.12 Alternative Minimum Tax Exemption for a Child Subject to the "Kiddie Tax." For taxable years beginning in 2024, for a child to whom the 1(g) "kiddie tax" applies, the exemption amount under 55(d) and 59(j) for purposes of the alternative minimum tax under 55 may not exceed the sum of (1) the child's earned income for the taxable year, plus (2) $9,250.

.13 Certain Expenses of Elementary and Secondary School Teachers. For taxable years beginning in 2024, under 62(a)(2)(D) the amount of the deduction allowed under 162 that consists of expenses paid or incurred by an eligible educator in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom is $300.

.14 Transportation Mainline Pipeline Construction Industry Optional Expense Substantiation Rules for Payments to Employees Under Accountable Plans. For calendar year 2024, an eligible employer may pay certain welders and heavy equipment mechanics an amount up to $22 per hour for rig-related expenses that are deemed substantiated under an accountable plan if paid in accordance with Rev. Proc. 2002-41, 2002-1 C.B. 1098. If the employer provides fuel or otherwise reimburses fuel expenses, an amount up to $13 per hour is deemed substantiated if paid under Rev. Proc. 2002-41.

.15 Standard Deduction.

(1) In general. For taxable years beginning in 2024, the standard deduction amounts under 63(c)(2) are as follows:

Filing StatusStandard Deduction
Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(j)(2)(A))$29,200
Heads of Households (§ 1(j)(2)(B))$21,900
Unmarried Individuals (other than Surviving Spouses and Heads of Households) (§ 1(j)(2)(C))$14,600
Married Individuals Filing Separate Returns (§ 1(j)(2)(D))$14,600

(2) Dependent. For taxable years beginning in 2024, the standard deduction amount under 63(c)(5) for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of (1) $1,300, or (2) the sum of $450 and the individual's earned income.

(3) Aged or blind. For taxable years beginning in 2024, the additional standard deduction amount under 63(f) for the aged or the blind is $1,550. The additional standard deduction amount is increased to $1,950 if the individual is also unmarried and not a surviving spouse.

.16 Cafeteria Plans. For taxable years beginning in 2024, the dollar limitation under 125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,200. If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is $640.

.17 Qualified Transportation Fringe Benefit. For taxable years beginning in 2024, the monthly limitation under 132(f)(2)(A) regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $315. The monthly limitation under 132(f)(2)(B) regarding the fringe benefit exclusion amount for qualified parking is $315.

.18 Income from United States Savings Bonds for Taxpayers Who Pay Qualified Higher Education Expenses. For taxable years beginning in 2024, the exclusion under 135, regarding income from United States savings bonds for taxpayers who pay qualified higher education expenses, begins to phase out for modified adjusted gross income above $145,200 for joint returns and $96,800 for all other returns. The exclusion is completely phased out for modified adjusted gross income of $175,200 or more for joint returns and $111,800 or more for all other returns.

.19 Adoption Assistance Programs. For taxable years beginning in 2024, under 137(a)(2), the amount that can be excluded from an employee's gross income for the adoption of a child with special needs is $16,810. For taxable years beginning in 2024, under 137(b)(1) the maximum amount that can be excluded from an employee's gross income for the amounts paid or expenses incurred by an employer for qualified adoption expenses furnished pursuant to an adoption assistance program for adoptions by the employee is $16,810. The amount excludable from an employee's gross income begins to phase out under 137(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $252,150 and is completely phased out for taxpayers with modified adjusted gross income of $292,150 or more. (See section 3.04 of this revenue procedure for the adjusted items relating to the adoption credit.)

.20 Private Activity Bonds Volume Cap. For calendar year 2024, the amounts used under 146(d) to calculate the State ceiling for the volume cap for private activity bonds is the greater of (1) $125 multiplied by the State population, or (2) $378,230,000.

.21 Loan Limits on Agricultural Bonds. For calendar year 2024, the loan limit amount on agricultural bonds under 147(c)(2)(A) for first-time farmers is $649,400.

.22 General Arbitrage Rebate Rules. For bond years ending in 2024, the amount of the computation credit determined under 1.148-3(d)(4) of the Income Tax Regulations is $2,070.

.23 Safe Harbor Rules for Broker Commissions on Guaranteed Investment Contracts or Investments Purchased for a Yield Restricted Defeasance Escrow. For calendar year 2024, under 1.148-5(e)(2)(iii)(B)(1) of the Income Tax Regulations, a broker's commission or similar fee for the acquisition of a guaranteed investment contract or investments purchased for a yield restricted defeasance escrow is reasonable if (1) the amount of the fee that the issuer treats as a qualified administrative cost does not exceed the lesser of (A) $49,000, and (B) 0.2 percent of the computational base (as defined in 1.148-5(e)(2)(iii)(B)(2)) or, if more, $5,000; and (2) for any issue, the issuer does not treat more than $138,000 in brokers' commissions or similar fees as qualified administrative costs for all guaranteed investment contracts and investments for yield restricted defeasance escrows purchased with gross proceeds of the issue.

.24 Gross Income Limitation for a Qualifying Relative. For taxable years beginning in 2024, the exemption amount referenced in 152(d)(1)(B) is $5,050.

.25 Election to Expense Certain Depreciable Assets. For taxable years beginning in 2024, under 179(b)(1), the aggregate cost of any 179 property that a taxpayer elects to treat as an expense cannot exceed $1,220,000 and under 179(b)(5)(A), the cost of any sport utility vehicle that may be taken into account under 179 cannot exceed $30,500. Under 179(b)(2), the $1,220,000 limitation under 179(b)(1) is reduced (but not below zero) by the amount by which the cost of 179 property placed in service during the 2024 taxable year exceeds $3,050,000.

.26 Energy Efficient Commercial Building Deduction. For taxable years beginning in 2024, the applicable dollar value used to determine the maximum allowance of the deduction under 179D(b)(2) is $0.57 increased (but not above $1.13) by $0.02 for each percentage point by which the total annual energy and power costs for the buildings are certified to be reduced by a percentage greater than 25 percent. For taxable years beginning in 2024, the applicable dollar value used to determine the increased deduction amount for certain property under 179D(b)(3) is $2.83 increased (but not above $5.65) by $0.11 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent.

.27 Qualified Business Income. For taxable years beginning in 2024, the threshold amounts under 199A(e)(2) and phase-in range amounts under 199A(b)(3)(B) and 199A(d)(3)(A) are:

Filing StatusThreshold amountPhase-in range amount
Married Individuals Filing Joint Returns$383,900$483,900
Married Individuals Filing Separate Returns$191,950$241,950
All Other Returns$191,950$241,950

.28 Eligible Long-Term Care Premiums. For taxable years beginning in 2024, the limitations under 213(d)(10), regarding eligible long-term care premiums includible in the term "medical care", as adjusted for inflation, are as follows:

Attained Age Before the Close of the Taxable YearLimitation on Premiums
40 or less$470
More than 40 but not more than 50$880
More than 50 but not more than 60$1,760
More than 60 but not more than 70$4,710
More than 70$5,880

.29 Medical Savings Account.

(1) Self-only coverage. For taxable years beginning in 2024, the term "high deductible health plan" as defined in 220(c)(2)(A) means, for self-only coverage, a health plan that has an annual deductible that is not less than $2,800 and not more than $4,150, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $5,550.

(2) Family coverage. For taxable years beginning in 2024, the term "high deductible health plan" means, for family coverage, a health plan that has an annual deductible that is not less than $5,550 and not more than $8,350, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $10,200.

.30 Interest on Education Loans. For taxable years beginning in 2024, the $2,500 maximum deduction for interest paid on qualified education loans under 221 begins to phase out under 221(b)(2)(B), as adjusted for inflation, for taxpayers with modified adjusted gross income in excess of $80,000 ($165,000 for joint returns),and is completely phased out for taxpayers with modified adjusted gross income of $95,000 or more ($195,000 or more for joint returns).

.31 Limitation on Use of Cash Method of Accounting. For taxable years beginning in 2024, a corporation or partnership meets the gross receipts test of 448(c) for any taxable year if the average annual gross receipts of such entity for the 3-taxable-year period ending with the taxable year which precedes such taxable year does not exceed $30,000,000.

.32 Threshold for Excess Business Loss. For taxable years beginning in 2024, in determining a taxpayer's excess business loss, the amount under 461(I)(3)(A)(ii)(II) is $305,000 ($610,000 for joint returns).

.33 Treatment of Dues Paid to Agricultural or Horticultural Organizations. For taxable years beginning in 2024, the limitation under 512(d)(1), regarding the exemption of annual dues required to be paid by a member to an agricultural or horticultural organization, is $201.

.34 Insubstantial Benefit Limitations for Contributions Associated with Charitable Fund-Raising Campaigns.

(1) Low cost article. For taxable years beginning in 2024, for purposes of defining the term "unrelated trade or business" for certain exempt organizations under 513(h)(2), "low cost articles" are articles costing $13.20 or less.

(2) Other insubstantial benefits. For taxable years beginning in 2024, under 170, the $5, $25, and $50 guidelines in section 3 of Rev. Proc. 90-12, 1990-1 C.B. 471 (as amplified by Rev. Proc. 92-49, 1992-1 C.B. 987, and modified by Rev. Proc. 92-102, 1992-2 C.B. 579), for the value of insubstantial benefits that may be received by a donor in return for a contribution, without causing the contribution to fail to be fully deductible, are $13.20, $66.00 and $132.00, respectively.

.35 Special Rules for Credits and Deductions. For taxable years beginning in 2024, the amount of the deduction under 642(b)(2)(C)(i) is $5,000.

.36 Tax on Insurance Companies Other than Life Insurance Companies. For taxable years beginning in 2024, under 831(b)(2)(A)(i) the amount of the limit on net written premiums or direct written premiums (whichever is greater) is $2,800,000 to elect the alternative tax for certain small companies under 831(b)(1) to be taxed only on taxable investment income.

.37 Expatriation to Avoid Tax. For calendar year 2024, under 877A(g)(1)(A), unless an exception under 877A(g)(1)(B) applies, an individual is a covered expatriate if the individual's "average annual net income tax" under 877(a)(2)(A) for the five taxable years ending before the expatriation date is more than $201,000.

.38 Tax Responsibilities of Expatriation. For taxable years beginning in 2024, the amount that would be includible in the gross income of a covered expatriate by reason of 877A(a)(1) is reduced (but not below zero) by $866,000 pursuant to 877A(a)(3).

.39 Foreign Earned Income Exclusion. For taxable years beginning in 2024, the foreign earned income exclusion amount under 911(b)(2)(D)(i) is $126,500.

.40 Debt Instruments Arising Out of Sales or Exchanges. For calendar year 2024, a qualified debt instrument under 1274A(b) has stated principal that does not exceed $7,098,600, and a cash method debt instrument under 1274A(c)(2) has stated principal that does not exceed $5,070,500.

.41 Unified Credit Against Estate Tax. For an estate of any decedent dying in calendar year 2024, the basic exclusion amount is $13,610,000 for determining the amount of the unified credit against estate tax under 2010.

.42 Valuation of Qualified Real Property in Decedent's Gross Estate. For an estate of a decedent dying in calendar year 2024, if the executor elects to use the special use valuation method under 2032A for qualified real property, the aggregate decrease in the value of qualified real property resulting from electing to use 2032A for purposes of the estate tax cannot exceed $1,390,000.

.43 Annual Exclusion for Gifts.

(1) For calendar year 2024, the first $18,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under 2503 made during that year.

(2) For calendar year 2024, the first $185,000 of gifts to a spouse who is not a citizen of the United States (other than gifts of future interests in property) are not included in the total amount of taxable gifts under 2503 and 2523(i)(2) made during that year.

.44 Tax on Arrow Shafts. For calendar year 2024, the tax imposed under 4161(b)(2)(A) on the first sale by the manufacturer, producer, or importer of any shaft of a type used in the manufacture of certain arrows is $0.62 per shaft.

.45 Passenger Air Transportation Excise Tax. For calendar year 2024, the tax under 4261(b)(1) on the amount paid for each domestic segment of taxable air transportation is $5.00. For calendar year 2024, the tax under 4261(c)(1) on any amount paid (whether within or without the United States) for any international air transportation, if the transportation begins or ends in the United States, generally is $22.20. Under 4261(c)(3), however, a lower rate of tax applies under 4261(c)(1) to a domestic segment beginning or ending in Alaska or Hawaii, and the tax applies only to departures. For calendar year 2024, the rate of tax is $11.10.

.46 Tax on Certain Uses of Crude Oil and Petroleum Products. For calendar year 2024, the tax imposed under 4611(a) on crude oil received at a United States refinery and petroleum products entered into the United States for consumption, use, or warehousing is $0.26 cents per barrel.

.47 Reporting Exception for Certain Exempt Organizations with Nondeductible Lobbying Expenditures. For taxable years beginning in 2024, the annual per person, family, or entity dues limitation to qualify for the reporting exception under 6033(e)(3) (and section 5.05 of Rev. Proc. 98-19, 1998-1 C.B. 547), regarding certain exempt organizations with nondeductible lobbying expenditures, is $140 or less.

.48 Notice of Large Gifts Received from Foreign Persons. For taxable years beginning in 2024, 6039F authorizes the Secretary of the Treasury or her delegate to require recipients of gifts from certain foreign persons to report these gifts if the aggregate value of gifts received in the taxable year exceeds $19,570.

.49 Persons Against Whom a Federal Tax Lien Is Not Valid. For calendar year 2024, a federal tax lien is not valid against (1) certain purchasers under 6323(b)(4) who purchased personal property in a casual sale for less than $1,900, or (2) a mechanic's lienor under 6323(b)(7) who repaired or improved certain residential property if the contract price with the owner is not more than $9,520.

.50 Property Exempt from Levy. For calendar year 2024, the value of property exempt from levy under 6334(a)(2) (fuel, provisions, furniture, and other household personal effects, as well as arms for personal use, livestock, and poultry) cannot exceed $11,390. The value of property exempt from levy under 6334(a)(3) (books and tools necessary for the trade, business, or profession of the taxpayer) cannot exceed $5,700.

.51 Exempt Amount of Wages, Salary, or Other Income. For taxable years beginning in 2024, the dollar amount used to calculate the amount determined under 6334(d)(4)(B) is $5,000.

.52 Interest on a Certain Portion of the Estate Tax Payable in Installments. For an estate of a decedent dying in calendar year 2024, the dollar amount used to determine the "2-percent portion" (for purposes of calculating interest under 6601(j)) of the estate tax extended as provided in 6166 is $1,850,000.

.53 Failure to File Tax Return. In the case of any return required to be filed in 2024, the amount of the addition to tax under 6651(a) for failure to file an income tax return within 60 days of the due date of such return (determined with regard to any extensions of time for filing) will not be less than the lesser of $510 or 100 percent of the amount required to be shown as tax on such return.

.54 Failure to File Certain Information Returns, Registration Statements, etc. For returns required to be filed in 2025, the penalty amounts under 6652(c) are:

(1) for failure to file a return required under 6033(a)(1) (relating to returns by exempt organization) or 6012(a)(6) (relating to returns by political organizations):

ScenarioDaily PenaltyMaximum Penalty
Organization (§ 6652(c)(1)(A))$25Lesser of $12,500 or 5% of gross receipts of the organization for the year.
Organization with gross receipts exceeding $1,274,000 (6652(c)(1)(A))$125$63,500
Managers (§ 6652(c)(1)(B))$10$6,000
Public inspection of annual returns and reports (§ 6652(c)(1)(C))$25$12,500
Public inspection of applications for exemption and notice of status (§ 6652(c)(1)(D))$25No Limit


(2) for failure to file a return required under 6034 (relating to returns by certain trust) or 6043(b) (relating to terminations, etc., of exempt organizations):

ScenarioDaily PenaltyMaximum Penalty
Organization or trust (§ 6652(c)(2)(A))$10$6,000
Managers (§ 6652(c)(2)(B))$10$6,000
Split-Interest Trust (§ 6652(c)(2)(C)(ii))$25$12,500
Any trust with gross income exceeding $318,500 (6652(c)(2)(C)(ii))$125$63,500


(3) for failure to file a disclosure required under 6033(a)(2):

ScenarioDaily PenaltyMaximum Penalty
Tax-exempt entity (§ 6652(c)(3)(A))$125$63,500
Failure to comply with written demand (§ 6652(c)(3)(B)(ii))$125$12,500

.55 Other Assessable Penalties With Respect to the Preparation of Tax Returns for Other Persons. In the case of any failure relating to a return or claim for refund filed in 2025, the penalty amounts under 6695 are:

ScenarioPer Return or Claim for RefundMaximum Penalty
Failure to furnish copy to taxpayer (§ 6695(a))$60$31,500
Failure to sign return (§ 6695(b))$60$31,500
Failure to furnish identifying number (§ 6695(c))$60$31,500
Failure to retain copy or list (§ 6695(d))$60$31,500
Failure to file correct information returns (§ 6695(e))$60 per return and item in return$31,500
Negotiation of check (§ 6695(f))$635 per checkNo limit
Failure to be diligent in determining eligibility for head of household filing status, child tax credit, American Opportunity tax credit, and earned income credit (§ 6695(g))$635 per failureNo limit

.56 Failure to File Partnership Return. In the case of any return required to be filed in 2025, the dollar amount used to determine the amount of the penalty under 6698(b)(1) is $245.

.57 Failure to File S Corporation Return. In the case of any return required to be filed in 2025, the dollar amount used to determine the amount of the penalty under 6699(b)(1) is $245.

.58 Failure to File Correct Information Returns. In the case of any failure relating to a return required to be filed in 2025, the penalty amounts under 6721 are:

(1) for persons with average annual gross receipts for the most recent three taxable years of more than $5,000,000, for failure to file correct information returns:

ScenarioPenalty Per ReturnCalendar Year Maximum
General Rule (§ 6721(a)(1))$330$3,987,000
Corrected on or before 30 days after required filing date (§ 6721(b)(1))$60$664,500
Corrected after 30th day but on or before August 1, 2025 (§ 6721(b)(2))$130$1,993,500

(2) for persons with average annual gross receipts for the most recent three taxable years of $5,000,000 or less, for failure to file correct information returns:

ScenarioPenalty Per ReturnCalendar Year Maximum
General Rule (§ 6721(a)(1))$330$1,329,000
Corrected on or before 30 days after required filing date (§ 6721(d)(1)(B))$60$232,500
Corrected after 30th day but on or before August 1, 2025 (6721(d)(1)(C)) (§ 6721(d)(1)(C))$130$664,500

(3) for failure to file correct information returns due to intentional disregard of the filing requirement (or the correct information reporting requirement):

ScenarioPenalty Per ReturnCalendar Year Maximum
Return other than a return required to be filed under §§ 6045(a), 6041A(b), 6050H, 6050I, 6050J, 6050K, or 6050L (§ 6721(e)(2)(A))Greater of (i) $630, or (ii) 10% of aggregate amount of items required to be reported correctlyNo limit
Return required to be filed under §§ 6045(a), 6050K, or 6050L (§ 6721(e)(2)(B))Greater of (i) $660, or (ii) 5% of aggregate amount of items required to be reported correctlyNo limit
Return required to be filed under § 6050I(a) (§ 6721(e)(2)(C))Greater of (i) $33,220, or (ii) amount of cash received up to $132,500No limit
Return required to be filed under § 6050V (§ 6721(e)(2)(D))Greater of (i) $660, or (ii) 10% of the value of the benefit of any contract with respect to which information is required to be included on the returnNo limit

.59 Failure to Furnish Correct Payee Statements. In the case of any failure relating to a statement required to be furnished in 2025, the penalty amounts under 6722 are:

(1) for persons with average annual gross receipts for the most recent three taxable years of more than $5,000,000, for failure to furnish correct payee statements:

ScenarioPenalty Per StatementCalendar Year Maximum
General Rule (§ 6722(a)(1))$330$3,987,000
Corrected on or before 30 days after required furnishing date (§ 6722(b)(1))$60$664,500
Corrected after 30th day but on or before August 1, 2025 (§ 6722(b)(2))$130$1,993,500

(2) for persons with average annual gross receipts for the most recent 3 taxable years of $5,000,000 or less, for failure to furnish correct payee statements:

ScenarioPenalty Per StatementCalendar Year Maximum
General Rule (§ 6722(d)(1)(A))$330$1,329,000
Corrected on or before 30 days after required furnishing date (§ 6722(d)(1)(B))$60$232,500
Corrected after 30th day but on or before August 1, 2025 (§ 6722(d)(1)(C))$130$664,500

(3) for failure to furnish correct payee statements due to intentional disregard of the requirement to furnish a payee statement (or the correct information reporting requirement):

ScenarioPenalty Per StatementCalendar Year Maximum
Payee statement other than a statement required under §§ 6045(b), 6041A(e) (in respect of a return required under § 6041A(b)), 6050H(d), 6050J(e), 6050K(b), or 6050L(c) (§ 6722(e)(2)(A))Greater of (i) $660, or (ii) 10% of aggregate amount of items required to be reported correctlyNo limit
Payee statement required under §§ 6045(b), 6050K(b), or 6050L(c) (§ 6722(e)(2)(B))Greater of (i) $660, or (ii) 5% of aggregate amount of items required to be reported correctlyNo limit

.60 Revocation or Denial of Passport in Case of Certain Tax Delinquencies. For calendar year 2024, the amount of a serious delinquent tax debt under 7345 is $62,000.

.61 Attorney Fee Awards. For fees incurred in calendar year 2024, the attorney fee award limitation under 7430(c)(1)(B)(iii) is $240 per hour.

.62 Periodic Payments Received Under Qualified Long-Term Care Insurance Contracts or Under Certain Life Insurance Contracts. For calendar year 2024, the stated dollar amount of the per diem limitation under 7702B(d)(4), regarding periodic payments received under a qualified long-term care insurance contract or periodic payments received under a life insurance contract that are treated as paid by reason of the death of a chronically ill individual, is $410.

.63 Qualified Small Employer Health Reimbursement Arrangement. For taxable years beginning in 2024, to qualify as a qualified small employer health reimbursement arrangement under 9831(d), the arrangement must provide that the total amount of payments and reimbursements for any year cannot exceed $6,150 ($12,450 for family coverage).

SECTION 4. EFFECTIVE DATE
.01 General Rule. Except as provided in section 4.02 of this revenue procedure, this revenue procedure applies to taxable years beginning in 2024.

.02 Calendar Year Rule. This revenue procedure applies to transactions or events occurring in calendar year 2024 for purposes of sections 3.08 (rehabilitation expenditures treated as separate new building), 3.09 (low-income housing credit), 3.14 (transportation mainline pipeline construction industry optional expense substantiation rules for payments to employees under accountable plans), 3.20 (private activity bonds volume cap), 3.21 (loan limits on agricultural bonds), 3.22 (general arbitrage rebate rules), 3.23 (safe harbor rules for broker commissions on guaranteed investment contracts or investments purchased for a yield restricted defeasance escrow), 3.37 (expatriation to avoid taxes), 3.40 (debt instruments arising out of sales or exchanges), 3.41 (unified credit against estate tax), 3.42 (valuation of qualified real property in decedent's gross estate), 3.43 (annual exclusion for gifts), 3.44 (tax on arrow shafts), 3.45 (passenger air transportation excise tax), 3.46 (tax on certain uses of crude oil and petroleum products), 3.49 (persons against whom a federal tax lien is not valid), 3.50 (property exempt from levy), 3.52 (interest on a certain portion of the estate tax payable in installments), 3.60 (revocation or denial of passport in case of certain tax delinquencies), 3.61 (attorney fee awards), and 3.62 (periodic payments received under qualified long-term care insurance contracts or under certain life insurance contracts) of this revenue procedure.

SECTION 5. DRAFTING INFORMATION
The principal author of this revenue procedure is Kyle Walker of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this revenue procedure, contact Mr. Walker at (202) 317-4718 (not a toll-free call).

FOOTNOTES


1. Unless otherwise specified, all references to "section" or "" references are to provisions of the Internal Revenue Code (Code).


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