WASHINGTON — As the 2025 tax filing season approaches, the Internal Revenue Service (IRS) is providing crucial guidance to help taxpayers prepare accurate 2024 tax returns. This comprehensive guide covers essential preparations, significant changes, and valuable resources to streamline your filing process.
This article is part of the IRS’s annual Tax Time Guide series, designed to offer up-to-date information and support. To further assist taxpayers, the IRS provides a wealth of resources and tools on IRS.gov, including a dedicated special free help page available 24/7. For detailed guidance and updates, refer to Publication 17, Your Federal Income Tax (For Individuals).
Key Tips for Accurate Tax Filing
- Deadline: The deadline for filing Form 1040, U.S. Individual Income Tax Return, or 1040-SR, U.S. Tax Return for Seniors, is April 15, 2025.
- Wait for All Documents: Avoid filing until you receive all necessary tax documents. Carefully review each document for accuracy and contact your employer or payer immediately to correct any errors.
- IRS Online Account: Create an IRS Online Account to securely access your tax information, payment history, and records, simplifying your preparation.
- Digital Organization: Maintain digitally organized tax documents to streamline filing and identify potential deductions or credits.
- ITIN Renewal: If you have an Individual Taxpayer Identification Number (ITIN), ensure it is current. The IRS accepts returns with expiring or expired ITINs, but processing delays may occur.
Significant Tax Law Changes for 2024
- Additional Child Tax Credit (ACTC):
- The maximum ACTC amount is now $1,700 per qualifying child.
- Bona fide residents of Puerto Rico with one or more qualifying children are now eligible.
- Refunds claiming the ACTC will not be issued before mid-February 2025.
- Standard Deduction Increase:
- Single or married filing separately: $14,600.
- Head of household: $21,900.
- Married filing jointly or qualifying surviving spouse: $29,200.
- Child Tax Credit (CTC):
- The initial CTC is $2,000 per qualifying child.
- Phase-out begins with adjusted gross income (AGI) exceeding $200,000 ($400,000 for joint returns).
- Children must be under 17 at the end of 2024.
- Earned Income Tax Credit (EITC):
- To claim the EITC without a qualifying child, taxpayers must be aged 25-64 at the end of 2024.
- Married filing jointly requires one spouse to meet the age requirement.
- Adoption Credit:
- The Adoption Credit and exclusion for employer-provided adoption benefits are $16,810 per eligible child.
- Phase-out begins with modified AGI exceeding $252,150 and is fully phased out at $292,150.
- Refer to Form 8839 and Instructions for Form 8839.
- Clean Vehicle Credit:
- Reported on Form 8936 and Schedule 3 (Form 1040), line 6f.
- Previously Owned Clean Vehicle Credit:
- Available for vehicles acquired after 2022.
- Refer to Form 8936, Clean Vehicle Credit.
- IRA Contribution Limit:
- Increased to $7,000 ($8,000 for those 50 or older).
- 1099-K Reporting:
- The reporting threshold for Third-Party Settlement Organizations (TPSOs) is now $5,000.
- Refer to Notice 2024-85 and understand Form 1099-K.
Free Filing Options
- IRS Free File: Eligible taxpayers can use brand-name tax software at no cost through IRS.gov.
- Free File Fillable Forms: Use these forms to file by mail or online, regardless of income.
- Direct File: File federal returns online, directly with the IRS, for free, if you meet the requirements. Visit IRS Direct File for details.
- MilTax: Free tax resources for the military community, including software and support.
- VITA and TCE: Free tax preparation for qualified individuals. Use the VITA Locator Tool or call 800-906-9887.
Resources:
- IRS.gov: https://www.irs.gov/
- Special Free Help: https://www.irs.gov/freefile
- Publication 17: https://www.irs.gov/pub/irs-pdf/p17.pdf
- IRS Online Account: https://www.irs.gov/payments/your-online-account
- Form 1040: https://www.irs.gov/forms-pubs/about-form-1040
- Form 1040-SR: https://www.irs.gov/forms-pubs/about-form-1040-sr
- Form 8839: https://www.irs.gov/forms-pubs/about-form-8839
- Instructions for Form 8839: https://www.irs.gov/instructions/i8839
- Form 8936: https://www.irs.gov/forms-pubs/about-form-8936
- IRS Direct File: https://www.irs.gov/filing/direct-file
- VITA Locator Tool: https://irs.treasury.gov/freetaxprep/
- Notice 2024-85: https://www.irs.gov/pub/irs-drop/n-24-85.pdf
- Form 1099-K: https://www.irs.gov/forms-pubs/about-form-1099-k