As the 2024 tax season nears, the IRS has introduced several changes aimed at simplifying the filing process.
"We have made enhancements to our IRS online account portal, which basically it allows taxpayers to go in there and view what they owe, what they've paid. They can request tax transcripts; they can make payments. Now those taxpayers that have an ITIN can also take advantage of those same services." said Alejandra Castro spokesperson for the IRS.
For taxpayers who used apps like PayPal or Venmo for business transactions in 2023, the IRS will not yet apply the new $600 reporting rule. "The reporting threshold has been delayed," said Castro.
Instead, taxpayers will only get a 1099-K form if they received over $20,000 and had more than 200 transactions in 2023 through these apps. They IRS says this delay is to help taxpayers adjust and avoid confusion. Starting in 2024, the IRS will lower this limit to $5,000, impacting returns filed in 2025.
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Those looking to benefit from energy-related tax credits should pay close attention to the new guidelines, "If they bought like a clean vehicle or an electric vehicle, they should look on IRS.gov to make sure that they qualify. If taxpayers made energy improvements to their home, they can also qualify for a credit a tax professional can guide the taxpayer through the process to make sure they're getting all the credits," said Castro.
For a smoother filing process, "Have all your tax documents handy, that you don't file too early because you want to make sure that you're not missing a 1099," said Castro.
For the quickest refund, it's recommended to file 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. "And very important if you're claiming either the earned income tax credit or the advanced child tax credit. By law, the IRS has to hold the entire refund until mid-February." said Castro.
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While the official start date for the tax season hasn't been announced yet, it typically begins in late January. It's also crucial to be vigilant about scams throughout this period.
Remember, the IRS will not call you out of blue to demand immediate payment or contact you through emails, social media, or texts. Such messages are likely scams.
If you're unsure, contact the IRS directly or check your IRS online account. The IRS can be reached at 1-800-829-1040.
