The 2025 tax filing season is in full swing, and the Internal Revenue Service (IRS) is urging taxpayers to prepare diligently for their 2024 tax returns. As part of the Tax Time Guide series, the IRS is offering updated information to help taxpayers file accurate returns. Resources and tools are readily available on IRS.gov, with a dedicated free help page accessible round the clock.
Taxpayers are advised to refer to Publication 17, Your Federal Income Tax (For Individuals), for comprehensive guidance and updates. Here are some essential tips to ensure the accuracy of your tax return:
Deadline and Documentation: File Form 1040 or 1040-SR by April 15, 2025, only after receiving all necessary tax documents. Carefully review all information and promptly address any discrepancies with your employer or payer.
Online Account: Create an IRS Online Account for secure access to your tax information, payment history, and records. Maintaining digital copies of tax documents can simplify the filing process and help identify potential deductions or credits.
ITIN Renewal: If you have an Individual Taxpayer Identification Number (ITIN) that has expired, consider renewing it to avoid processing delays in your tax return.
Updates for Tax Year 2024 include changes to the Additional Child Tax Credit (ACTC) and standard deduction amounts. The ACTC has increased to $1,700 per qualifying child, with adjustments for residents of Puerto Rico. The standard deduction amounts for different filing statuses have also been raised.
Child Tax Credit (CTC) enhancements and changes to the Earned Income Tax Credit (EITC) should be noted for the 2024 tax year. Taxpayers eligible for these credits should file promptly, as the IRS will automatically adjust for future guideline changes.
Moreover, the IRA contribution limit has increased to $7,000 (or $8,000 for individuals aged 50 and older) starting in 2024. Changes to 1099-K reporting requirements for Third-party Settlement Organizations (TPSOs) have also been implemented. Familiarize yourself with Form 1099-K to understand reporting thresholds and transitions for 2024.
Free filing options such as IRS Free File, Free File Fillable Forms, Direct File, MilTax, VITA, and TCE programs are available to assist taxpayers in filing their returns accurately and efficiently. These resources cater to various taxpayer needs, including military personnel, senior citizens, and low-income individuals.
For a detailed overview of credit and deduction changes, consult Publication 17, Your Federal Income Tax (For Individuals), and visit IRS.gov for comprehensive information on tax year 2024 updates. Stay informed, prepared, and compliant to make the most of the current tax season.