Tax Season 2024: Key Updates for Filers
Direct File Expansion
The IRS's Direct File program has expanded to 25 states, allowing eligible individuals to file their tax returns directly with the IRS for free. With enhancements such as automatic W-2 import and support for various tax credits, Direct File now accommodates a wider range of taxpayers.
Income Limits for Direct File
* Individual filers: $200,000 or less
* Joint filers: $250,000 or less
* Separate filers: $125,000 or less
Free File Program Continues
Individuals earning less than $84,000 per year can still utilize the Free File system in partnership with private tax preparation companies.
New 1099-K Reporting
Business earnings from payment apps such as Venmo and PayPal are now subject to 1099-K reporting if they exceed $5,000 for the year. This measure aims to reduce tax evasion by tracking income that previously went unreported.
Increased Standard Deduction
The standard deduction has been increased significantly, making it more advantageous for most taxpayers to claim it instead of itemizing deductions. In 2024, the standard deduction will be $14,600 for individuals and $29,200 for married couples filing jointly.
Future of Direct File
The political future of Direct File is uncertain, with some lawmakers calling for its discontinuation. However, the program will remain operational this tax season.
Eligibility Checker
The IRS provides an online tool to assist taxpayers in determining their eligibility for Direct File within each state.
Zelle Exemption
Zelle is not considered subject to the new 1099-K reporting requirements and will not be issuing 1099-Ks for business transactions.
Tax Tips and Resources
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