2024 Tax Credit Limits Based on Filing Status
|Tax Filing Status||2024 Limit|
|Married Separate Filer||$2,500|
|Married Joint Filer||$5,000|
|Pass-Through Owner (not making HB 149 election)*||$25,000|
|C Corp, Trust, or Pass-Through electing to pay tax at the entity level (HB 149)||75% of annual tax liability|
|Business that pays insurance premium tax||75% of annual tax liability, but credit shall not exceed $1 million|
*Pass-through income required to support a $25,000 tax credit is $455,373 ($25,000 divided by .0549 = $455,373). Keep in mind that income from the pass-throughs can include both profits (K-1) and wages (W-2) income. Pass-through income required to support a $10,000 tax credit is $182,149.
*For 2023, the tax credit cap increased to $120 million per year from $100 million per year and remains at that amount for 2024.