TAX UPDATES: What to Look Foward for 2024 (Summary)

 IRS ONLINE ACCOUNT ENHANCEMENTS

• Taxpayers and ITIN holders can now use their online accounts to approve and sign power of attorney and tax information authorization from their tax professionals
• View their tax owed and payment history and schedule payments
• Request tax transcript
• View/apply payment plans
• See digital copies of some IRS notices
• View key data from tehir most recently filed tax return, including adjusted gross income
• Validate bank accounts and save multiple accounts
  

AVOID REFUND DELAYS AND UNDERSTAND REFUND TIMING

• The IRS can not promise a guarantee date for your tax refund, although it will most likely get to you in less than 21 days, usually
• If you chose to claim either Earned Income Tax Credit or Additional Child Tax Credit, your tax return will not get to you before mid-February. You should see your tax return by Feb. 27, 2024 if you chose direct deposit and there are no additional issues
  

LAST QUARTERLY PAYMENT FOR 2023 IS FUE ON JAN 16, 2024

•  Non-wage income from unemployment, self-employment, annuity or else may need to do additional tax payments (use the Tax Withholding Estimator to see if you need to may extra payments)
  

GATHER 2023 TAX DOCUMENTS

•  The IRS suggests that taxpayers should develop a unified system that keeps all of your important, tax related documents in one place
  

1099-K REPORTING THRESHOLD DELAYED

• The new $600 Form 1099-K reporting threshold for 3rd party settlements will be delayed for the year 2023 
• Reporting of Form 1099-K will not be required unless the taxpayer receives over $20,000 and has more than 200 transactions
• The IRS will be implementing a $5,000 threshold for the year 2024
• The IRS recommend that taxpayers understand why they received a Form 1099-k and what to do if they should have not received it
• All income is still taxable unless explicitly excluded by the law regardless of whether they received any variation of a 1099 Form

UNDERSTAND ENERGY RELATED CREDITS

•  Changes in the Inflation Reduction Act of 2022 may now qualify for tax credits
• They may qualify if they either purchased an electric vehicle in before the end of 2022, or if they purchased a new clean vehicle after the beginning of 2023.
• Taxpayers may qualify for credits if they made energy improvements to their homes regarding their expenses, (will need to file a Form 5695, Residential Energy Credits, Part II with their tax return)

SPEED TAX REFUNDS WITH DIRECT DEPOSIT

•  Electronic direct deposit is the fastest method to get your tax return
• You may learn how at an FDIC insured bank or the national Credit Union Locator Tool
• Prepaid debit cards or mobile apps may allow for direct deposit of tax refunds

Reference

https://www.irs.gov/newsroom/get-ready-to-file-in-2024-whats-new-and-what-to-consider