As another tax filing season approaches, taxpayers should prepare for key updates and deadlines. While the IRS has yet to announce the official start date, it typically begins processing returns in late January. Here’s a comprehensive overview of what to expect this year:
Updated 2024 Tax Brackets
For Single Filers
- 10%: Taxable income up to $11,600
- 12%: Taxable income over $11,600
- 22%: Taxable income over $47,150
- 24%: Taxable income over $100,525
- 32%: Taxable income over $191,950
- 35%: Taxable income over $243,725
- 37%: Taxable income over $609,350
For Joint Filers
- 10%: Taxable income up to $23,200
- 12%: Taxable income over $23,200
- 22%: Taxable income over $94,300
- 24%: Taxable income over $201,050
- 32%: Taxable income over $383,900
- 35%: Taxable income over $487,450
- 37%: Taxable income over $731,200
Child Tax Credit
For 2024, the Child Tax Credit remains up to $2,000 per qualifying child. To qualify, the child must be under age 17 at the end of 2024.
Changes to 1099-K Reporting
Freelancers and gig workers using payment platforms like Venmo, PayPal, or Zelle should be aware of new reporting requirements for the 2024 tax year.
- Threshold for Form 1099-K: If you received over $5,000 in payments for goods and services through such platforms in 2024, expect to receive a Form 1099-K by January 2025. The IRS will also receive a copy of this form.
- Future Changes: The 1099-K reporting threshold will eventually decrease to $600.
Free Tax Filing Options
The IRS provides resources to help taxpayers file their returns at no cost:
- IRS Free File: Eligible taxpayers (approximately 70% of filers) can use brand-name tax software to prepare and file federal returns electronically.
- Fillable Forms: All taxpayers, regardless of income, can access IRS Free File Fillable Forms for basic filing.
The IRS Free File service is currently offline but will reopen in January.
Tax Refund Timeline
While most refunds are processed within 21 days of filing, several factors may cause delays. Filing electronically and opting for direct deposit remain the fastest methods to receive refunds.
Track the status of your refund using the IRS’s “Where’s My Refund?” tool.
Tax Filing Deadline
The deadline to file your 2024 tax return is Tuesday, April 15, 2025.
Victims of natural disasters may qualify for extensions. For instance, taxpayers in parts of Virginia affected by Hurricane Helene now have until May 1, 2025, to file federal returns.
2025 Tax Brackets: Key Adjustments
Looking ahead, the IRS will adjust tax brackets for 2025 by approximately 2.75%.
For Single Filers
- 10%: Taxable income up to $11,925
- 12%: Taxable income over $11,925
- 22%: Taxable income over $48,475
- 24%: Taxable income over $103,350
- 32%: Taxable income over $197,300
- 35%: Taxable income over $250,525
- 37%: Taxable income over $626,350
For Joint Filers
- 10%: Taxable income up to $23,850
- 12%: Taxable income over $23,850
- 22%: Taxable income over $96,950
- 24%: Taxable income over $206,700
- 32%: Taxable income over $394,600
- 35%: Taxable income over $501,050
For the latest updates, visit the IRS website. Prepare early and stay informed to ensure a smooth filing season.
