2024 FSA Limit Increase
Flexible Spending Arrangements (FSAs) can be used to pay medical expenses throughout the year, and the contribution limit for 2024 is increased by $150 to $3200. Employees who participate in an FSA can contribute through payroll deductions, and the amount is not subject to federal income tax, Social Security tax, or Medicare tax. Depending on the FSA plan, qualified medical expenses can include those not covered by a health plan, such as copays and deductibles, as well as services such as dental or vision care, and over-the-counter medicines. More information is available in Publication 969.
2024 Filing: Get Ready
The IRS urges taxpayers to ready themselves for filing their 2023 federal income tax return by being prepared. Important things to be aware of include:
- Enhancements to online taxpayer accounts, including access to data and information
- 1099-K reporting threshold delay
- Energy related credits, for electric vehicles (purchased in 2022 or before, or in 2023), or home improvements
- Timing of refunds, avoiding delays, and using direct deposit
- Important documents needed for filing
Find more information at the Get Ready page.
National Tax Security Awareness Week Concludes
Security Summit partners have wrapped up the 8th National Tax Security Awareness Week. The focus is on protecting sensitive financial information against identity thieves and other security threats, especially around the holidays and the start of the 2024 tax season.
- Day Three spotlighted the use of the Identity Protection Personal Identification Number (IP PIN) for more protection against identify theft during the 2024 tax season. The IP PIN helps prevent fraudulent return filing or the theft of refunds with stolen taxpayer information.
- Day Four highlighted the prevention of data loss and fraud for businesses, whether cyberattacks or phishing and other schemes. More info at the FTC’s Cybersecurity for Small Businesses.
- Day Five was for the tax professional, to maintain vigilance against emerging scams during the filing season as well as throughout the year. Recognizing scam red flags, using identity protection tools, and steps to take if fraud is suspected are covered.
ERC Disallowance Work Expanded
The IRS continues its efforts to combat dubious Employee Retention Credit (ERC) claims. More than 20,000 letters have been sent to taxpayers notifying them of disallowed ERC claims, including to entities that did not exist or did not have employees during the eligible ERC period. The special withdrawal program is still available to those with pending claims who realize their claims were inaccurate, and there will be a voluntary disclosure program unveiled soon to allow those who already received improper payments to avoid future IRS action.