Tax Season 2024: Updates and Enhancements
Direct File Expansion and Upgrades
The IRS Direct File program is expanding to 13 new states, enabling more Americans to file their returns directly with the IRS at no cost. Enhanced features include automatic W-2 import, support for various tax credits, and expanded income eligibility.
Streamlined Tax Preparation for Gig Workers and Small Businesses
New reporting rules for third-party payment apps (e.g., Venmo, PayPal) aim to combat tax fraud. Gig workers and small business owners who receive payments via these apps may receive 1099-K forms with a lower reporting threshold of $5,000 for 2023.
Standard Deduction Increase
The standard deduction has increased significantly in recent years. For 2023, it stands at $14,600 for individuals and $29,200 for couples, making it more advantageous for many taxpayers to use the simplified deduction option.
Other Notable Updates
* The Free File program remains available for low-income taxpayers (income less than $84,000).
* The future of Direct File is uncertain due to political debate.
* Zelle is not subject to the new 1099-K reporting requirements.