Tax Season 2024: Key Updates for Filing Your Taxes
Direct File Expansion and Enhancements
This year, the IRS's Direct File program has expanded to 25 states, allowing eligible taxpayers to file their returns directly to the IRS for free. Enhanced features include:
* Automatic W-2 import from the IRS
* Support for various tax credits, such as the Earned Income Tax Credit and Affordable Care Act Premium Tax Credit
* Eligibility increase to 30.3 million Americans
1099-K Reporting Changes
To combat tax fraud, new reporting rules are in effect for payment apps like PayPal and Venmo. Platforms are now required to issue 1099-K forms for business transactions exceeding $5,000 (or $600 in 2025).
Free File Remains an Option
Taxpayers earning less than $84,000 can still use the Free File system, partnered with private tax preparation companies.
Increased Standard Deduction
The standard deduction has increased to $15,000 for individuals and $30,000 for couples, making it more likely that taxpayers will not itemize deductions.
Future of Direct File Uncertain
The future of Direct File is uncertain, as Republican lawmakers have called for its termination. While the Treasury secretary nominee has assured its continuation for this tax season, long-term plans remain unknown.
Additional Information
* Visit the IRS website for eligibility details on Direct File.
* If you receive an incorrect 1099-K form, contact the issuer for a correction.
* Zelle is not subject to the new reporting requirements.