WASHINGTON, D.C. — The Internal Revenue Service (IRS) has issued a detailed update on essential changes and guidelines for the 2025 tax filing season, urging taxpayers to make early preparations to ensure an accurate and timely filing process. These updates, part of the IRS’s Tax Time Guide series, provide critical information on tax credits, deductions, and filing requirements for the 2024 tax year.
With tax returns due by April 15, 2025, the IRS emphasized the importance of organized tax recordkeeping and leveraging available resources for assistance. To simplify the process, the agency recommends taxpayers create an IRS Online Account, which offers secure access to tax records, payment history, and other essential information. Additionally, Publication 17, Your Federal Income Tax (For Individuals), provides comprehensive guidance on filing and is available on IRS.gov along with a special 24/7 free help page.
Key Tax Changes for 2024 Returns
Several updates affecting tax credits, deductions, and reporting requirements highlight the upcoming filing season. Among these updates are changes to the Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC), standard deduction amounts, and eligibility criteria for other major credits.
The maximum ACTC has increased to $1,700 per qualifying child. Bona fide residents of Puerto Rico may now claim the ACTC with one or more qualifying children instead of the prior three-child minimum requirement. The IRS noted, however, that refunds incorporating the ACTC will not be issued before mid-February 2025.
For the CTC, the credit amount remains $2,000 for each qualifying child under 17, with phaseouts starting at adjusted gross incomes (AGI) of $200,000 for single filers and $400,000 for joint filers. The IRS encourages taxpayers to file early, as the agency will automatically adjust filings to reflect any Congressional changes to CTC guidelines affecting 2024 returns.
The Earned Income Tax Credit (EITC) for individuals without qualifying children now requires taxpayers to be at least 25 years old and under 65 by the end of 2024. Additionally, the Adoption Credit has been raised to $16,810 per eligible child, with phaseouts beginning at a modified AGI of $252,150.
The standard deduction amounts have also increased for all filers. For 2024, the new figures are:
- Single or married filing separately — $14,600
- Head of household — $21,900
- Married filing jointly or qualifying surviving spouse — $29,200
Expanding Clean Energy Incentives
Taxpayers purchasing clean vehicles can benefit from the Clean Vehicle Credit, which remains available for both new and previously owned clean vehicles. Details on this incentive, including how to claim it using Form 8936, are provided in Publication 17.
Additional Tax Filing Updates
The IRS highlighted changes to 1099-K reporting requirements for 2024. Payment apps and third-party settlement organizations must now report transactions exceeding $5,000, up from the previous reporting thresholds. Taxpayers involved in such transactions are encouraged to become familiar with Form 1099-K to ensure compliance.
Additionally, the IRA contribution limit has increased to $7,000 for 2024, with an $8,000 limit for individuals aged 50 or older. This adjustment provides an expanded opportunity for taxpayers to save for retirement while reducing taxable income.
Free Filing Resources
To assist taxpayers, the IRS is offering various free filing options, including IRS Free File and Direct File, accessible through IRS.gov. Eligible taxpayers can utilize brand-name tax software without cost, while those filing straightforward returns may benefit from Free File Fillable Forms.
The IRS also continues to support the military community through its MilTax program, which provides free tax preparation, electronic filing, and personalized tax advice for eligible individuals. Additionally, the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs are available for qualified taxpayers who require help with basic tax return preparation.
Encouraging Early Preparation
The IRS advises taxpayers to wait until receiving all required documents before filing to prevent errors and possible delays in processing. Those whose individual taxpayer identification numbers (ITINs) have expired should renew them promptly to avoid complications.
Looking Ahead to the 2025 Filing Season
With the introduction of these updates, the IRS underscores the importance of staying informed and taking advantage of available resources. Taxpayers are encouraged to organize finances early, explore eligible credits or deductions, and utilize free tools such as IRS Online Accounts to ease the process.
By preparing ahead of the filing deadline and understanding the latest tax rules, individuals can ensure accuracy and make the most of opportunities to maximize their refunds or minimize liabilities. These changes reflect the federal government’s continued efforts to simplify filing while aligning incentives with evolving taxpayer needs.
Comprehensive information on these and other changes for tax year 2024 are found on Publication 17, Your Federal Income Tax (For Individuals), and on IRS.gov.
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