As the 2024 tax season approaches, the IRS has introduced several changes aimed at simplifying the filing process.
“We’ve made improvements to the IRS online account portal, which allows taxpayers to go in there and see what they owe and what they’ve paid. They can request tax transcripts, they can make payments. Now those taxpayers who have an ITIN can also take advantage of those same services ” IRS spokeswoman Alejandra Castro said.
For taxpayers who used apps like PayPal or Venmo for business transactions in 2023, the IRS will no longer enforce the new $600 reporting rule. “The threshold for reporting is late,” Castro said.
Instead, taxpayers will only get a 1099-K if they received more than $20,000 and made more than 200 transactions in 2023 through these apps. The IRS says this delay is intended to help taxpayers adjust and avoid confusion. Starting in 2024, the IRS will reduce this limit to $5,000, affecting returns filed in 2025.
Those looking to take advantage of energy-related tax credits should pay close attention to the new guidelines, “If they purchase like a clean car or an electric car, they should look on IRS.gov to make sure they qualify. If taxpayers make energy,” Castro said. “If they make improvements to their home, they can also qualify for a credit and a tax professional can walk taxpayers through the process to make sure they get all the credits.”
For a smoother filing process, “Have all of your tax documents handy, so you don’t file too early because you want to make sure you’re not missing a 1099,” Castro said.
For a faster refund, it is recommended that you submit the application electronically and choose direct deposit. Taxpayers should double check bank account and routing numbers to prevent delays. While the IRS typically issues refunds in less than 21 days, sometimes additional reviews for errors, missing information, or suspected fraud can extend processing times. “This is very important if you are claiming either the Earned Income Tax Credit or the Advanced Child Tax Credit. By law, the IRS is required to hold on to your full refund until mid-February.” Castro said.
Although the official start date for tax season has not yet been announced, it typically begins in late January. It is also important to be careful about scams throughout this period.
Remember, the IRS will not call you out of the blue to demand immediate payment or contact you via emails, social media, or text messages. Such messages are likely scams.
If you’re not sure, contact the IRS directly or check your IRS account online. The IRS can be reached at 1-800-829-1040.