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As we delve into the 2025 tax filing season, the IRS has rolled out significant updates that could impact your 2024 tax returns. Here’s everything you need to know to prepare effectively:
IRS Tax Time Guide Series
The IRS has launched its Tax Time Guide series to assist you with up-to-date information. Explore resources on IRS.gov or visit the special free help page anytime.
- Resource: Read Publication 17 for detailed guidance.
Filing Tips for Accuracy
- Deadline: Mark your calendar; the deadline for filing Form 1040 or 1040-SR is April 15, 2025.
- Document Review: Wait for all tax documents before filing to prevent errors. Check for accuracy and request corrections if necessary.
- IRS Online Account: Use this to manage your tax information securely. It’s key for organizing digital documents and spotting potential deductions.
ITIN Renewal
If your Individual Taxpayer Identification Number (ITIN) is expiring or has expired, renew it to avoid filing delays.
Updates to Additional Child Tax Credit (ACTC)
- Increase: The maximum ACTC for 2024 is $1,700 per child.
- Puerto Rico Residents: Now, one qualifying child is enough to claim the credit.
- Refund Delays: Expect refunds involving ACTC after mid-February 2025.
Other Notable Changes for 2024
- Standard Deduction:
- Single or Married Filing Separately: $14,600
- Head of Household: $21,900
- Married Filing Jointly or Qualifying Surviving Spouse: $29,200
- Child Tax Credit (CTC):
- Credit amount: $2,000 per child, phasing out at AGI over $200,000 ($400,000 for joint filers).
- Age Limit: Child must be under 17 by the end of 2024.
- Earned Income Tax Credit (EITC):
- Age Requirement: Must be at least 25 but under 65 to claim without a child.
- Adoption Credit: Up to $16,810 per child, with phase-out starting at $252,150 modified AGI.
- Clean Vehicle Credits: Check Form 8936 for both new and previously owned vehicles.
- IRA Contribution Limit: Increased to $7,000 ($8,000 if aged 50+).
- 1099-K Changes: TPSOs must report transactions over $5,000 for 2024. Refer to Notice 2024-85.
Free Filing Options
- IRS Free File: Use brand-name software for free on IRS.gov.
- Free File Fillable Forms: For those who prefer self-preparation.
- Direct File: A new service for straightforward tax situations. Visit IRS Direct File.
- MilTax: Free for military; includes support for multi-state filings.
- VITA/TCE: Free tax prep for those who qualify. Find a site with the VITA Locator Tool.
Ensure your 2024 tax return is both accurate and beneficial with our Tax Impact Calculator. Stay updated with the latest tax changes by bookmarking IRS Tax Updates.
Discover essential updates and tips for the 2025 tax season to ensure your 2024 tax return is accurate and maximizes your refunds. File now!”
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