The 2024 tax season brings several changes that reshape deductions and credits for investors and consumers. The IRS implemented stricter reporting requirements for online sellers, now requiring platforms like Amazon, eBay, and PayPal to file 1099-K forms for transactions exceeding $5,000, down from the prior $20,000 threshold. This affects millions of side-hustle operators and small e-commerce businesses.
Electric vehicle buyers face a revised tax credit landscape. The IRS tightened income caps and vehicle price limits under the Inflation Reduction Act's EV tax credit, now capping the credit at $7,500 for new vehicles and $4,000 for used EVs. Income thresholds dropped to $300,000 for joint filers and $150,000 for single filers. Buyers who previously qualified may no longer meet the stricter requirements.
The standard deduction increased to $14,600 for single filers and $29,200 for married couples filing jointly, reflecting annual inflation adjustments. State and local tax deductions remain capped at $10,000, a limitation holding since 2017.
Energy-efficient home improvements qualify for expanded credits. Taxpayers can claim up to $3,200 annually for qualifying upgrades like heat pumps, insulation, and solar installations, up from prior limitations. These credits phase out based on income levels.
For investors, the long-term capital gains rates remained unchanged at 0 percent, 15 percent, and 20 percent depending on income. However, net investment income tax rates and thresholds shifted slightly, affecting high-net-worth portfolios.
Remote workers and freelancers should note changes to home office deductions and business expense documentation. The IRS intensified audits on Schedule C filers earning between $25,000 and $