The Internal Revenue Service (IRS) encourages taxpayers to make “essential preparations” and recognize “significant changes” that could affect their 2024 tax returns.
The 2025 tax season begins on January 27th, with some taxpayers already beginning to file tax returns with the IRS. Above February 19ththe IRS has released annual updates “Tax Time Guide”“This instructs taxpayers to recognize important changes that affect certain groups upon filing.
The guide has been published every year since 2015.
This is the changed.
Increase in standard deduction amount
In 2024, the standard deductions for all filers increased. for
- Separately single or married filings – $14,600.
- Head of household – $21,900.
- Co-submitted or qualified surviving spouse – $29,200.
In 2023, the standard deduction for single taxpayers and married people was $13,850. For the head of household, that was $20,800.
Additional Child Tax Credit Update
The maximum additional child tax credit (ACTC) amount increased to $1,700 for each eligible child.
Authentic Puerto Rico residents no longer need to have at least three eligible children eligible to claim ACTC. A genuine Puerto Rico residents may be eligible to claim ACTC if they have one or more qualified children.
The IRS states that “refunds cannot be issued before mid-February 2025 for returns that properly claim ACTC.” This applies not only to the parts related to ACTC, but also to the entire refund.
Changes to Earned Income Tax Deduction (EITC)
To claim EITC without a qualified child, the taxpayer must be 25 years old, but be under 65 by the end of the year. A joint filer must have at least one spouse who meets this requirement.
Schedule 8812 (Form 1040) Provides details about the child tax credit.
Recruitment Credit
The exclusion of recruitment credits and employer-provided adoption benefits is $16,810 per qualifying child in 2024. If a taxpayer corrects an AGI that is over $252,150, it will be phased out completely if the revised gross adjusted income is over $292,150. More details can be found by taxpayers Form 8839 and Form 8839.
Clean Car Credit
Clean Vehicle Credits must be reported using Form 8936 and Schedule 3 (Form 1040), row 6f. There's more guidance Form 8936, Clean Vehicle Credit.
Clean Vehicle Credits I used to own
This credit is available on previously owned clean vehicles that were acquired and used after 2022. Taxpayers can find details Form 8936, Clean Vehicle Credit.
For more information about these and other credit and deduction changes for the 2024 tax year, please see Publication 17, Your Federal Income Tax (for individuals)taxpayer guide.
The deadline for submission tax is April 15th.
