Tax season 2024 brings several changes that reshape deductions and credits for individual filers. The IRS has adjusted standard deduction amounts upward, benefiting taxpayers who do not itemize. For married couples filing jointly, the standard deduction rises to $29,200, up from $27,700 in 2023. Single filers see their standard deduction increase to $14,600 from $13,850.
Online sellers face new reporting requirements. Third-party payment platforms like PayPal, Venmo, and Square must now file Form 1099-K for any account with more than $5,000 in transactions, down from the previous $20,000 threshold. This change affects freelancers, resellers, and small business operators who use these platforms. The IRS aims to capture unreported income, so taxpayers selling goods online must track gross proceeds carefully.
Electric vehicle buyers gain access to expanded incentives. The clean vehicle credit reaches $7,500 for qualifying new EVs and $4,000 for used vehicles. Income limits apply, with joint filers capped at $300,000 and single filers at $150,000. Vehicle price caps also matter: $80,000 for vans, SUVs, and pickups; $55,000 for sedans. Assembly requirements mandate that final assembly occurs in North America.
Energy efficiency improvements at home remain incentivized. Credits for insulation upgrades, HVAC systems, and heat pumps persist, capped at $3,200 per year for most improvements. These incentives encourage homeowners to invest in long-term energy savings.
Charitable contribution rules stay consistent, but documentation matters. Donors claiming cash contributions over $250 require written acknowledgment from charities. Noncash donations exceeding $500 demand Form 8283 filing.
The child tax credit remains at $2,000 per child under age 17, though the refundable portion caps at $1,700. Dependent care credits and education credits like the American Opportunity Credit continue unchanged.
Tax professionals note that changes cluster around consumption tracking and clean energy adoption. Filers should organize receipts for online sales early and review EV eligibility before year-end purchases. The lower 1099-K threshold creates compliance pressure on casual sellers.