Tax Season 2024: Seven IRS Tax Changes to Know Before You File

What You Need to Know for the 2024 Tax Season

The credit for new qualified plug-in electric drive motor vehicles has changed. The maximum amount of the credit and some of the requirements to claim tax season the credit have changed. The credit is reported on Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit, and on Form 1040, Schedule 3.

What You Need to Know for the 2024 Tax Season

You can make a contribution up to $3,050 and if you have an employer plan that allows carryover of unused amounts the maximum carry over amount for 2023 is $610. The solar energy credit increased to 30% if you purchase residential energy efficient property, like solar panels and solar water heaters between January 1, 2022 through December 31, 2032. The Direct File pilot is currently in the internal testing phase and will be more widely available in mid-March. Taxpayers can get the latest news about the pilot at Direct File pilot news and sign up to be notified when Direct File is open to new users.

How much is the 2023 Child Tax Credit?

If a taxpayer is married filing a joint return, one spouse must be at least age 25 but under age 65 at the end of 2023. People should plan to file electronically with direct deposit. This is still the fastest and easiest way to file and receive a refund. To avoid delays in processing, people should avoid filing paper returns whenever possible. The IRS is now treating the 2023 tax year as a transitional period—with Form 1099Ks required only for people receiving $20,000 with 200-plus transactions—and will phase in the new requirements in 2024.

The interest decreases as a percentage of your mortgage payment. When you first take out a mortgage, most of your payments are applied towards interest, so most of what you pay is tax deductible. However, the interest portion steadily declines so that by the time your mortgage is almost paid off, your payments are mostly non-deductible principal anyway. Even though the Form 1099-K reduced reporting requirement for third-party settlement organizations is delayed, some individuals may still receive a Form 1099-K who have not received one in the past. Some individuals may receive a Form 1099-K for the sale of personal items or in situations where they received a Form 1099-K in error (i.e. for transactions between friends and family, or expense sharing).

File

Creating an IRS Online Account can provide taxpayers with secure access to information about their federal tax account, including payment history, tax records and other important information. Taxpayers are advised to wait until they receive all their proper tax documents before filing their tax returns. Filing without all the necessary documents could lead to mistakes and potential delays.

What You Need to Know for the 2024 Tax Season

However, the agency has said that amounts issued in some states, including Minnesota Walz checks and Arizona Families Tax Rebates, are considered taxable income. With the tax season starting, it’s good to know the standard deduction amounts, (which, due to adjustments for inflation, are higher than last tax year) if you don’t already. To learn more see our guide to the standard deduction for 2023 and 2024. We have a free online learning tool to help you understand what taxes are, how to do them, and what’s in it for you. We want to empower people to do their own taxes and to make sure they know about the benefit and credit payments they could be eligible for. We have 5-minute lessons, fun quizzes, and quick videos on everything you need to know.

When is the deadline for filing my 2023 tax return?

A few examples include high income taxpayers, household employment taxes, self-employment net earnings of at least $400 or wages of $108.28 or more from a church exempt from employer FICA taxes. While 93% of Canadians file their returns electronically, some taxpayers still file on paper. If you’re one of the 2 million Canadians that still file a paper return, you should have already received your 2023 tax package in the mail.

Scroll to Top