4 Key Updates to Know Before You File Your 2024 Taxes

On By Littum

Tax season is officially here.

The Internal Revenue Service will begin accepting returns for the 2024 tax year on Jan. 27, and filers have until April 15 to file their returns or request an extension.

If you experienced a major life event in 2024, like getting married, having a child, or buying a house, filing your taxes will likely be a little different this year. Otherwise, there are not too many major changes from last year.

Here are four things for everyone to be aware of when filing your 2024 taxes.

1. more options to archive for free

The IRS expanded its popular Direct File Program to make more taxpayers eligible to file for free directly through the agency. Filers in Alaska, Connecticut, Idaho, Illinois, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin join taxpayers in the 12 states where the direct file program was previously available.

In addition, only filers with “simple” tax situations could use the direct file option last year, but in 2025 taxpayers who claim the following credits can also use direct file:

  • Children and dependent care credit
  • Premium tax credit
  • Credit for the elderly and disabled
  • Retirement savings contribution credits

2. Updated tax brackets and standard deductions

For tax year 2024, the standard deduction for single filers is $14,600 and increases to $29,200 for joint filers.

Top earners—individuals earning more than $609,350 in taxable income or couples earning more than $731,200—will continue to pay a marginal tax rate of 37%. Here are the rest of the tax credits for 2024 filing:

3. certain tax credits may still be claimed

Filers who bought an electric vehicle in 2024 can Claim up to a $7,500 credit for new cars and $4,000 for used vehicle purchases. However, President Donald Trump has said he plans to end this credit, so it may not be available to filers in the future.

Married parents earning up to $400,000 or single filers earning up to $200,000 were temporarily expanded during the pandemic.

TCJA is scheduled to expire At the end of this 2025, that would bring the maximum tax credit for children back to $1,000, unless Congress decides to continue Trump’s signature tax policy.

4. Updated threshold for reporting digital payments

If you received over $5,000 on Venmo, PayPal or other payment platforms in exchange for goods and services, you will likely receive a 1099-K form to report this income on your taxes.

This means that if you sold concert tickets, clothes or other goods online, you may owe tax on your profits. For tax year 2025, the threshold drops to $2,500, and the following year it will be $600.

Want to increase your AI skills and be more productive? Take CNBC’s new online course How to use AI to be more successful at work. Expert instructors will teach you how to get started, practical applications, tips for effective speed writing and mistakes to avoid. Sign up now and use coupon code Earlybird for an introductory discount of 30% off $67 (+ taxes and fees) through 11 February 2025.

Plus, Sign up for CNBC Make It’s Newsletter To get tips and tricks for success at work, with money and in life.

I spar, create and sell clothes for music festivals as a sidewall