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.)

Rev. Proc. 2023-34

Table of Contents
SECTION 1. PURPOSE
SECTION 2. CHANGES
SECTION 3. 2024 ADJUSTED ITEMS
Code Section 1
.01 Tax Rate Tables ..................................................................................... 1(j)(2) (A)-(D)
.02 Unearned Income of Minor Children Subject to the “Kiddie Tax” .......................... 1(g)
.03 Maximum Capital Gains Rate............................................................................... 1(h)
.04 Adoption Credit ....................................................................................................... 23
.05 Child Tax Credit ....................................................................................................... 24
.06 Earned Income Credit ............................................................................................. 32
.07 Refundable Credit for Coverage Under a Qualified Health Plan .............. 36B(f)(2)(B)

1Unless otherwise specified, all references to “section” or “§” references are to provisions of the Internal
Revenue Code (Code).
 2

.08 Rehabilitation Expenditures Treated as Separate New Building ........................ 42(e)

.09 Low-Income Housing Credit ............................................................................... 42(h)
.10 Employee Health Insurance Expense of Small Employers .................................. 45R
.11 Exemption Amounts for Alternative Minimum Tax ................................................... 55
.12 Alternative Minimum Tax Exemption for a Child Subject to the
“Kiddie Tax” ......................................................................................................... 59(j)
.13 Certain Expenses of Elementary and Secondary School Teachers .......... 62(a)(2)(D)
.14 Transportation Mainline Pipeline Construction Industry Optional
Expense Substantiation Rules for Payments to Employees
Under Accountable Plans ................................................................................... 62(c)
.15 Standard Deduction ................................................................................................ 63
.16 Cafeteria Plans ..................................................................................................... 125
.17 Qualified Transportation Fringe Benefit ............................................................. 132(f)
.18 Income from United States Savings Bonds for Taxpayers Who
Pay Qualified Higher Education Expenses ............................................................ 135
.19 Adoption Assistance Programs ............................................................................. 137
.20 Private Activity Bonds Volume Cap .................................................................. 146(d)
.21 Loan Limits on Agricultural Bonds ................................................................ 147(c)(2)
.22 General Arbitrage Rebate Rules ....................................................................... 148(f)
.23 Safe Harbor Rules for Broker Commissions on Guaranteed
Investment Contracts or Investments Purchased for
a Yield Restricted Defeasance Escrow ................................................................. 148
.24 Gross Income Limitation for a Qualifying Relative................................... 152(d)(1)(B)
.25 Election to Expense Certain Depreciable Assets .................................................. 179
.26 Energy Efficient Commercial Buildings Deduction ............................................. 179D
.27 Qualified Business Income ................................................................................. 199A
.28 Eligible Long-Term Care Premiums............................................................ 213(d)(10)
.29 Medical Savings Accounts..................................................................................... 220
.30 Interest on Education Loans.................................................................................. 221
.31 Limitation on Use of Cash Method of Accounting .................................................. 448
.32 Threshold for Excess Business Loss ........................................................... 461(l)
.33 Treatment of Dues Paid to Agricultural or Horticultural Organizations.............. 512(d)
.34 Insubstantial Benefit Limitations for Contributions Associated With
Charitable Fund-Raising Campaigns ............................................................... 513(h)
.35 Special Rules for Credits and Deductions ............................................................. 642
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.36 Tax on Insurance Companies Other than Life Insurance Companies ................... 831
.37 Expatriation to Avoid Tax ....................................................................................... 877
.38 Tax Responsibilities of Expatriation .................................................................... 877A
.39 Foreign Earned Income Exclusion ........................................................................ 911
.40 Debt Instruments Arising Out of Sales or Exchanges....................................... 1274A
.41 Unified Credit Against Estate Tax ........................................................................ 2010
.42 Valuation of Qualified Real Property in Decedent’s Gross Estate .................... 2032A
.43 Annual Exclusion for Gifts ......................................................................... 2503; 2523
.44 Tax on Arrow Shafts ............................................................................................ 4161
.45 Passenger Air Transportation Excise Tax ............................................................ 4261
.46 Tax on Certain Uses of Crude Oil and Petroleum Products................................. 4611
.47 Reporting Exception for Certain Exempt Organizations with
Nondeductible Lobbying Expenditures ....................................................... 6033(e)(3)
.48 Notice of Large Gifts Received from Foreign Persons ..................................... 6039F
.49 Persons Against Whom a Federal Tax Lien Is Not Valid...................................... 6323
.50 Property Exempt from Levy ............................................................................ 6334(a)
.51 Exempt Amount of Wages, Salary, or Other Income ...................................... 6334(d)
.52 Interest on a Certain Portion of the Estate Tax Payable in Installments .......... 6601(j)
.53 Failure to File Tax Return .................................................................................... 6651
.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 Persons ............................................................................ 6695
.56 Failure to File Partnership Return ....................................................................... 6698
.57 Failure to File S Corporation Return .................................................................... 6699
.58 Failure to File Correct Information Returns ......................................................... 6721
.59 Failure to Furnish Correct Payee Statements ..................................................... 6722
.60 Revocation or Denial of Passport in Case of Certain Tax Delinquencies ............ 7345
.61 Attorney Fee Awards ........................................................................................... 7430
.62 Periodic Payments Received Under Qualified Long-Term Care
Insurance Contracts or Under Certain Life Insurance Contracts .................. 7702B(d)
.63 Qualified Small Employer Health Reimbursement Arrangement ......................... 9831

SECTION 4. EFFECTIVE DATE

SECTION 5. DRAFTING INFORMATION
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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.
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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 $23,200 10% of the taxable income

Over $23,200 but $2,320 plus 12% of
not over $94,300 the excess over $23,200
Over $94,300 but $10,852 plus 22% of
not over $201,050 the excess over $94,300
Over $201,050 but $34,337 plus 24% of
not over $383,900 the excess over $201,050
Over $383,900 but $78,221 plus 32% of
not over $487,450 the excess over $383,900
Over $487,450 but $111,357 plus 35% of
not over $731,200 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 $16,550 10% of the taxable income
Over $16,550 but $1,655 plus 12% of
not over $63,100 the excess over $16,550
Over $63,100 but $7,241 plus 22% of
not over $100,500 the excess over $63,100
Over $100,500 but $15,469 plus 24% of
not over $191,950 the excess over $100,500
Over $191,950 but $37,417 plus 32% of
not over $243,700 the excess over $191,150
Over $243,700 but $53,977 plus 35% of
not over $609,350 the excess over $243,700
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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 $11,600 10% of the taxable income
Over $11,600 but $1,160 plus 12% of
not over $47,150 the excess over $11,600
Over $47,150 but $5,426 plus 22% of
not over $100,525 the excess over $47,150
Over $100,525 but $17,168.50 plus 24% of
not over $191,950 the excess over $100,525
Over $191,950 but $39,110.50 plus 32% of
not over $243,725 the excess over $191,150
Over $243,725 but $55,678.50 plus 35% of
not over $609,350 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 $11,600 10% of the taxable income
Over $11,600 but $1,160 plus 12% of
not over $47,150 the excess over $11,600
Over $47,150 but $5,426 plus 22% of
not over $100,525 the excess over $47,150
Over $100,525 but $17,168.50 plus 24% of
not over $191,950 the excess over $100,525
Over $191,950 but $39,110.50 plus 32% of
not over $243,725 the excess over $191,150
Over $243,725 but $55,678.50 plus 35% of
not over $365,600 the excess over $243,725
Over $365,600 $98,334.75 plus 37% of
the excess over $365,600
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TABLE 5 - Section 1(j)(2)(E) – Estates and Trusts

If Taxable Income Is: The Tax Is:

Not over $3,100 10% of the taxable income

Over $3,100 but $310 plus 24% of
not over $11,150 the excess over $3,100
Over $11,150 but $2,242 plus 35% of
not over $15,200 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 Status Maximum Zero Maximum15%

Rate Amount Rate Amount
Married Individuals Filing Joint Returns and Surviving Spouse $94,050 $583,750
Married Individuals Filing Separate Returns $47,025 $291,850
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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
 10

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).

Number of Qualifying Children

Item One Two Three or More None

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 $29,640 $29,640 $29,640 $17,250
(Married Filing Jointly)
Completed Phaseout Amount $56,004 $62,688 $66,819 $25,511
(Married Filing Jointly)
Threshold Phaseout Amount (All $22,720 $22,720 $22,720 $10,330
other filing statuses)
Completed Phaseout Amount (All $49,084 $55,768 $59,899 $18,591
other filing statuses)

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:

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If the household income The limitation amount for unmarried The limitation
(expressed as a percent of individuals (other than surviving amount for all other
poverty line) is: spouses and heads of household) is: taxpayers is:

Less than 200% $375 $750

At least 200% but less $950 $1,900

than 300%

At least 300% but less $1,575 $3,150

than 400%

.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
 12

which the 28 percent tax rate applies is:

Married Individuals Filing Separate Returns $116,300

All Other Taxpayers $232,600
 13

For taxable years beginning in 2024, the amounts used under § 55(d)(2) to determine the

phaseout of the exemption amounts are:

Threshold Phaseout Complete Phaseout

Amount Amount
Joint Returns or Surviving Spouses $1,218,700 $1,751,900
Unmarried Individuals (other than $609,350 $952,150
Surviving Spouses)
Married Individuals Filing Separate $609,350 $875,950
Returns
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
 14

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 Status Standard

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 $14,600
Households) (§ 1(j)(2)(C))
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
 15

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
 16

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.
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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 Status Threshold Phase-in range

amount amount
Married Individuals Filing Joint Returns $383,900 $483,900
Married Individuals Filing Separate $191,950 $241,950
Returns
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 Year Limitation on Premiums
40 or less $470
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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 Accounts.

(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.
19
 20

.32 Threshold for Excess Business Loss. For taxable years beginning in 2024, in

determining a taxpayer’s excess business loss, the amount under § 461(l)(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

 21

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.

 22

.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.

 23

.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.
 24

.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):

Scenario Daily Maximum Penalty

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

(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):

Scenario Daily Penalty Maximum

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 $125 $63,500
(§ 6652(c)(2)(C)(ii))

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

Scenario Daily Penalty Maximum

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

.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:

Scenario Per Return or Maximum

Claim for Refund 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 $31,500
item in return
Negotiation of check (§ 6695(f)) $635 per check No limit
Failure to be diligent in determining eligibility for $635 per failure No limit
head of household filing status, child tax credit,
American Opportunity tax credit, and earned income
credit (§ 6695(g))
 26

.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:

Scenario Penalty Per Return Calendar Year

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

(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:

Scenario Penalty Per Return Calendar Year

Maximum
General Rule (§ 6721(d)(1)(A)) $330 $1,329,000
Corrected on or before 30 days after required $60 $232,500
filing date (§ 6721(d)(1)(B))
Corrected after 30th day but on or before $130 $664,500
August 1, 2025 (§ 6721(d)(1)(C))
 27

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

requirement (or the correct information reporting requirement):

Scenario Penalty Per Return Calendar Year

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

.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:

Scenario Penalty Per Calendar Year

Statement Maximum
General Rule (§ 6722(a)(1)) $330 $3,987,000
Corrected on or before 30 days after $60 $664,500
required furnishing date (§ 6722(b)(1))
Corrected after 30th day but on or before $130 $1,993,500
August 1, 2025 (§ 6722(b)(2))
 28

(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:

Scenario Penalty Per Calendar Year

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

(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):

Scenario Penalty Per Calendar Year

Statement Maximum
Payee statement other than a statement Greater of (i) $660, No limit
required under §§ 6045(b), 6041A(e) (in or (ii) 10% of
respect of a return required under aggregate amount of
§ 6041A(b)), 6050H(d), 6050J(e), 6050K(b), items required to be
or 6050L(c) (§ 6722(e)(2)(A)) reported correctly
Payee statement required under §§ 6045(b), Greater of (i) $660, No limit
6050K(b), or 6050L(c) (§ 6722(e)(2)(B)) or (ii) 5% of
aggregate amount of
items required to be
reported correctly

.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
 29

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
 30

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).