Tax Season 2024: What You Need to Know
Get ready for tax season! Filing your taxes in 2024 could bring some significant changes, including:
Expanded Direct File Program
* Available in 25 states (expanded from 12 in 2023)
* Free tax filing directly with the IRS
* Enhanced features:
* Automatic W-2 import
* Support for more tax credits (EITC, CTC, etc.)
* Income limits:
* Individuals: <$200,000
* Couples: <$250,000
Updated 1099-K Reporting Rules for Gig Workers
* Forms will be issued for business payments on platforms like Venmo, PayPal, and eBay.
* Threshold reduced to $5,000 for 2024 (temporarily, $600 in future years)
* Excludes personal payments (e.g., splitting bills, rent)
* Note: Zelle is not subject to these reporting requirements.
Increased Standard Deduction
* Individual: $15,000
* Couple: $30,000
* May reduce the need for itemized deductions
Free File Continues
* Available for individuals with income below $84,000
* Partnered with private tax software companies
Other Notes:
* Direct File's future uncertainty
* Potential customer service delays due to hiring freeze
* Check IRS website for eligibility requirements in your state