Tax Updates.pdf

Qualified wildfire relief payments and certain East Palestine train derailment relief payments are not taxable. New reporting requirements for Form 1099-K start in 2024 with lower thresholds. The deferred compensation contribution limit increases to $23,000 ($30,500 if 50 or older). Health flexible spending arrangements have a $3,200 limit. Rollovers from qualified tuition programs to Roth IRAs are allowed with restrictions. The 100% business meal deduction has expired, and taxpayers can deduct 50% of business meals. Contributions to SEP and SIMPLE Roth IRAs are permitted. Designated Roth nonelective and matching contributions are allowed. De minimis financial incentives (up to $250) can be offered to employees. Paycheck Protection Program loan forgiveness is not included in gross income. Emergency financial aid grants and certain loan forgiveness under the CARES Act are excluded from income. Volunteer firefighters and emergency medical responders may exclude certain rebates or reductions from gross income. Alimony received under a divorce or separation instrument executed after 2018 is not includible in income. Qualified equity grants allow employees to defer income taxation for up to 5 years. The qualified bicycle commuting reimbursement exclusion is suspended. Unemployment compensation must be reported, and Achieving a Better Life Experience (ABLE) account distributions are tax-free if used for qualified disability expenses. Certain amounts received by wrongfully incarcerated individuals may be excluded from gross income, and foreign income must be reported on tax returns unless exempt by U.S. law.