Light Drizzle Fog/Mist 43°

SHARE

IRS Announces These Changes For 2025 Filing Season

As the 2025 tax filing season progresses, the Internal Revenue Service (IRS) has outlined key updates taxpayers need to know when preparing their 2024 returns. 

As the 2025 tax filing season progresses, the IRS has outlined key updates taxpayers need to know when preparing their 2024 returns. 

As the 2025 tax filing season progresses, the IRS has outlined key updates taxpayers need to know when preparing their 2024 returns. 

 Photo Credit: Pixabay/Steve Buissinne
Joe Lombardi
Facebook @joe_lombardi Email me Read More Stories

These changes affect deductions, tax credits, filing deadlines, and eligibility for various tax benefits.

Key Filing Updates and Deadlines

The deadline for submitting Form 1040 or 1040-SR for the 2024 tax year is Tuesday, April 15. 

Taxpayers are urged to wait until they receive all necessary documents before filing to avoid processing delays or errors. The IRS also recommends creating an IRS Online Account for secure access to tax records and streamlined filing.

Taxpayers with an Individual Taxpayer Identification Number (ITIN) should check if their number has expired, as filing with an expired ITIN may result in processing delays.

Changes to Tax Credits and Deductions

  • Additional Child Tax Credit (ACTC)
  • The maximum ACTC amount has increased to $1,700 per qualifying child.
  • Bona fide residents of Puerto Rico are now eligible for the ACTC with one or more qualifying children rather than the previous requirement of three or more.
  • The IRS cannot issue refunds before mid-February 2025 for those claiming the ACTC.

Standard Deduction Adjustments

For tax year 2024, the standard deduction has increased to:

  • $14,600 for single filers or married filing separately.
  • $21,900 for heads of household.
  • $29,200 for married couples filing jointly.

Child Tax Credit (CTC)

  • The CTC remains at $2,000 per qualifying child.
  • The phase-out begins at $200,000 adjusted gross income (AGI) for single filers and $400,000 for joint filers.
  • A qualifying child must be under age 17 at the end of 2024.

Other Key Changes

  • Earned Income Tax Credit (EITC)
  • Taxpayers without a qualifying child must be at least 25 but under 65 years old at the end of 2024 to claim the EITC.

Adoption Credit

  • The maximum adoption credit is now $16,810 per eligible child.
  • The credit phases out for taxpayers with a modified AGI exceeding $252,150 and is fully phased out at $292,150.

Clean Vehicle Credit

  • Available for new and previously owned electric vehicles.
  • Must be claimed using Form 8936, Clean Vehicle Credit.

IRA Contribution Limits Increased

The IRA contribution limit has increased to $7,000 ($8,000 for individuals aged 50 or older).

1099-K Reporting Requirement Changes

Third-party payment platforms must report transactions exceeding $5,000, a change from prior reporting thresholds.

Stay Informed

The IRS encourages taxpayers to visit IRS.gov and consult Publication 17 for full details on these changes and additional tax benefits.

Check back to Daily Voice for updates.

to follow Daily Voice Freeport and receive free news updates.

SCROLL TO NEXT ARTICLE