Qualified Commuter Parking and Mass Transit Pass Monthly Limit
For 2024, the monthly limits for qualified parking and mass transit are increased to $315 each, an increase of $15 from 2023.
Adoption Assistance Tax Credit Increase
For 2024, the credit allowed for adoption of a child is $16,810 (up $860 from 2023). The credit begins to phase out for taxpayers with modified adjusted gross income in excess of $252,150 (up $12,920 from 2023) and is completely phased out for taxpayers with modified adjusted gross income of $292,150 or more (up $12,830 from 2023).
Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) Increase
For 2024, reimbursements under a QSEHRA cannot exceed $6,150 (single) / $12,450 (family), an increase of $300 (single) / $650 (family) from 2023.
Reminder: 2024 HSA Contribution Limits and HDHP Deductible and Out-of-Pocket Limits
Earlier this year, in Rev. Proc. 2023-23, the IRS announced the inflation adjusted amounts for HSAs and high deductible health plans (HDHPs).
The ACA’s out-of-pocket limits for in-network essential health benefits have also been announced and have increased for 2024. Note that all non-grandfathered group health plans must contain an embedded individual out-of-pocket limit if the family out-of-pocket limit is above $9,450 (2024 plan years). Exceptions to the ACA’s out-of-pocket limit rule are available for certain small group plans eligible for transition relief (referred to as “Grandmothered” plans). While historically CMS has renewed the transition relief for Grandmothered plans each year, it announced in March 2022 that the transition relief will remain in effect until it announces that all such coverage must come into compliance with the specified requirements.
ACA Reporting Penalties (Forms 1094-B, 1095-B, 1094-C, 1095-C)
The table below describes late filing penalties for ACA reporting. The 2025 penalty is for returns filed in 2025 for calendar year 2024, and the 2024 penalty is for returns filed in 2024 for calendar year 2023. Note that failure to issue a Form 1095-C when required may result in two penalties, as the IRS and the employee are each entitled to receive a copy.