IRS Announces More 2025 Inflation-Adjusted Amounts

Employee Health Insurance Expense of Small Employers (Section 2.10 in Text)

For taxable years beginning in 2025, the dollar amount in effect under Section 45R(d)(3)(B) is $33,300. This amount is used for limiting the small employer health insurance credit and for determining who is an eligible small employer for purposes of the credit.

Cafeteria Plans - Flexible Spending Accounts (FSAs) (Section 2.16 in Text)

For taxable years beginning in 2025, the dollar limitation under Section 125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,300.

If the cafeteria plan permits the carryover of unused amounts, the maximum carryover amount is $660.

Qualified Transportation Fringe Benefit (Section 2.17 in Text)

For taxable years beginning in 2025, the monthly limitation under Section 132(f)(2)(A) regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $325.

The monthly limitation under Section 132(f)(2)(B) regarding the fringe benefit exclusion amount for qualified parking is $325.

Adoption Assistance Programs (Section 2.19 in Text)

For taxable years beginning in 2025, under Section 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 $17,280.

For taxable years beginning in 2025, under Section 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 $17,280.

Medical Savings Accounts (Section 2.29 in Text)

Self-only coverage. For taxable years beginning in 2025, the term 'high deductible health plan' as defined in Section 220(c)(2)(A) means, for self-only coverage, a health plan that has an annual deductible that is not less than $2,850 and not more than $4,300, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $5,700.

Family coverage. For taxable years beginning in 2025, the term 'high deductible health plan' means, for family coverage, a health plan that has an annual deductible that is not less than $5,700 and not more than $8,550, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $10,500."

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