J.K. Lasser's Small Business Taxes 2023

Appendix DList of Dollar Limits and Amounts Adjusted for Inflation

Taxes are a moving target because many dollar limits and percentages change annually due to increases in inflation. However, some limits and amounts are fixed in the Tax Code and cannot be changed without an act of Congress. Still others are set by the IRS for administrative convenience and are not adjusted annually but could change at the IRS's whim. To help you plan ahead and to figure estimated taxes for 2023, where necessary, lists of items that may or may not change for the next tax year follow. The adjustments for 2023 are listed in the Supplement to the extent that these are available in February 2023.

Items Adjusted Annually for Inflation

• 401(k) plans—the annual contribution limit through salary reductions as well as the additional contribution limit for those age 50 and older by year end.
• Adoption assistance—excludable employer‐provided adoption assistance for employees ($14,890 for 2022).
• Archer medical savings accounts (MSAs)—the dollar limit on contributions for plans established before 2008.
• Energy‐efficient commercial buildings—the dollar amount per square foot that can be deducted. For 2022, this is $1.88 per square foot (or 63¢ per square foot where applicable). Note: After 2022, different amounts (not these amounts adjusted for inflation) determine the deduction for energy‐efficient commercial buildings.
• Excepted benefit health reimbursement accounts—the dollar limit, initially fixed at $1,800, ...