IRS Announces New Benefit Amounts

The Internal Revenue Service announced in Revenue Procedure 2017-58  the annual inflation adjustments for more than 40 tax provisions for 2018, including the tax rate schedules, and other tax changes. This Revenue Procedure provides details about these annual adjustments: 

   

There are several benefit limitations for 2018 included: 

* The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) increases to $2,650.

  

*The amount for the adoption credit or the amount excluded for adoption assistance allowed for an adoption of a child with special needs is  increased to $13,840.

  

*The dollar amount for employee health Insurance expense of small employers is $26,700. This used for the tax credit.

  

*The monthly limitation for qualified transportation fringe benefit regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $260.  The monthly limit for qualified parking is also $260.

  

*The limitations regarding eligible long-term care premiums includible in the term "medical care," are increased as follows:

  

Attained Age Before the Close of the Taxable Year  Limitation on Premiums

  

40 or less                                                                                             $420

More than 40 but not more than 50                                                   $780

More than 50 but not more than 60                                                $1,560

More than 60 but not more than 70                                                $4,160

More than 70                                                                                     $5,200

.

*The deductible and out-of-pocket limits for "high deductible health plans" for Medical Savings Accounts are as follows:

For self-only coverage, a health plan that has an annual deductible that is not less than $2,300 and not more than $3,450, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $4,600.

  

For family coverage, a health plan that has an annual deductible that is not less than $4,600 and not more than $6,850, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $8,400. 

*The dollar amount used to determine individual mandate penalty for failure to maintain minimum essential coverage is $695.

For a copy of Revenue Ruling 2017-58 please click on the link below:

 https://www.irs.gov/pub/irs-drop/rp-17-58.pdf