As we move through the 2025 tax season, the IRS urges taxpayers to prepare early and stay informed about critical changes that may impact their 2024 tax returns. With new updates to deductions, credits, and filing requirements, being proactive can help you avoid costly mistakes and ensure a smooth filing experience.
IRS Tax Time Guide: Your Essential Resource
To assist taxpayers in filing accurate and complete returns, the Internal Revenue Servicee (IRS( has launched its annual Tax Time Guide series. This comprehensive resource offers up-to-date information, filing tips, and links to helpful tools available on IRS.gov—including a dedicated free help page that’s accessible 24/7.
For detailed guidance, taxpayers should review Publication 17: Your Federal Income Tax (For Individuals), which provides essential updates for this tax year.
Tips for Filing an Accurate Tax Return
The deadline for filing Form 1040 or Form 1040-SR for the 2024 tax year is April 15, 2025. To avoid errors or delays:
- Wait for all necessary documents. Ensure you’ve received W-2s, 1099s, and other tax forms before filing.
- Double-check your documents. Review them carefully for any errors or missing information. If there’s an issue, contact the issuer promptly.
- Create an IRS Online Account. This secure portal provides access to tax records, payment history, and other important information.
- Stay organized. Digitally storing tax documents can simplify the filing process and help identify overlooked deductions or credits.
If you have an Individual Taxpayer Identification Number (ITIN), check if it has expired. While the IRS will still accept returns with an expired ITIN, processing delays may occur.
Key Tax Changes for 2024
Additional Child Tax Credit (ACTC) Updates
- The maximum ACTC amount is now $1,700 per qualifying child.
- Bona fide residents of Puerto Rico can now claim the ACTC with just one qualifying child (previously, three or more were required).
- Refunds for tax returns claiming the ACTC will not be issued before mid-February 2025.
Standard Deduction Increase
For 2024, the standard deduction amounts have increased:
- Single or married filing separately – $14,600
- Head of household – $21,900
- Married filing jointly or surviving spouse – $29,200
Child Tax Credit (CTC) Enhancements
- The initial CTC amount remains $2,000 per qualifying child.
- The credit begins to phase out at an adjusted gross income (AGI) of $200,000 ($400,000 for joint filers).
- A child must be under age 17 at the end of 2024 to qualify.
- If Congress makes changes to the CTC, the IRS will automatically adjust returns for early filers, requiring no further action.
Earned Income Tax Credit (EITC) Changes
- To claim the EITC without a qualifying child, taxpayers must be at least 25 but under 65 by the end of 2024.
- For married joint filers, at least one spouse must meet the age requirement.
Adoption Credit
- The maximum Adoption Credit is $16,810 per eligible child in 2024.
- The credit phases out for taxpayers with modified AGI exceeding $252,150 and is eliminated at $292,150.
Clean Vehicle Credit
- Available for both new and previously owned clean vehicles.
- Requires Form 8936, Clean Vehicle Credit when filing.
IRA Contribution Limit Increase
- The contribution limit for IRAs is now $7,000 ($8,000 for individuals aged 50+), up from the prior year’s limit.
1099-K Reporting Changes
- Payment apps and online marketplaces (TPSOs) must now report transactions exceeding $5,000 (previously, the threshold was lower).
- Taxpayers receiving Form 1099-K should review it carefully and ensure accurate reporting.
Free Filing Options
- IRS Free File provides eligible taxpayers with brand-name tax software at no cost. Some packages also include free state tax filing.
- Free File Fillable Forms allow taxpayers of all income levels to prepare their returns electronically.
Get Ready for Tax Season Now!
With these updates in mind, now is the perfect time to organize your documents, explore available credits, and take advantage of free IRS resources. Staying informed and proactive can make tax filing stress-free and ensure you maximize your refund.
Need personalized bookkeeping or tax assistance? Contact us today for expert guidance and a hassle-free tax season!
Source: IRS.GOV