New Tax Updates For 2024 Filing Year
As the 2025 tax filing season continues, understanding the latest updates is crucial for everyone. At Total Business Care, LLC, we recognize that navigating changes in tax laws can be challenging. Our expert team is here to ensure that you’re fully informed about recent updates that could directly impact your tax obligations and opportunities for savings.
This year, there are key changes to deductions, credits, and reporting requirements that could significantly affect your returns. Our comprehensive tax services are designed to help you understand these updates, maximize your benefits, and avoid potential pitfalls. With experienced professionals who stay current on tax legislation, we provide guidance that aligns with your specific needs.
Changes for the 2024 tax year
➜ Additional Child Tax Credit for tax year 2024. The maximum Additional Child Tax Credit (ACTC) amount has increased to $1,700 for each qualifying child.
➜ Standard deduction amount increase. For 2024, the standard deduction amount has been increased for all filers. The amounts are:
Single or married filing separately — $14,600.
Head of household — $21,900.
Married filing jointly or qualifying surviving spouse — $29,200.
➜ Child Tax Credit enhancements. Under current law for tax year 2024, the following currently apply:
The initial amount of the CTC is $2,000 for each qualifying child. The credit amount begins to phase out where adjusted gross income (AGI) income exceeds $200,000 ($400,000 in the case of a joint return).
A child must be under age 17 at the end of 2024 to be a qualifying child.
➜ Changes to the Earned Income Tax Credit (EITC). To claim the EITC without a qualifying child in 2024, taxpayers must be at least age 25 but under age 65 at the end of 2024. If a taxpayer is married filing a joint return, one spouse must be at least age 25 but under age 65 at the end of 2024.
➜ Adoption Credit. The Adoption Credit and the exclusion for employer-provided adoption benefits are both $16,810 per eligible child in 2024. The amount begins to phase out if taxpayers have a modified AGI in excess of $252,150 and is completely phased out if their modified AGI is $292,150 or more.
➜ Clean Vehicle Credit. The Clean Vehicle Credit is reported on Form 8936 and Schedule 3 (Form 1040), line 6f.
➜ Previously owned Clean Vehicle Credit. This credit is available for previously owned clean vehicles acquired and placed in service after 2022.
➜ IRA contribution limit increased. Beginning in 2024, the IRA contribution limit is increased to $7,000 ($8,000 for individuals aged 50 or older) from $6,500 ($7,500 for individuals aged 50 or older) the prior year.
➜ 1099-K reporting requirements have changed for tax year 2024. The reporting threshold for 2024 has changed. Third-party settlement organizations (TPSOs), also known as payment apps and online marketplaces, are now required to report transactions when the amount of the total payments for those transactions in 2024 was more than $5,000.
menu_book Learn more: For more information on these updates, please visit the source of this information at the IRS website: here
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