Tax News and information

The IRS is working to protect taxpayers from falling victim to scams and schemes. Tax scams are on the rise, and scammers will try to deceive you by impersonating the IRS, providing bad tax advice and malicious web links. Always check if a message is real if you are being pressured for money, personal, financial or employee information. Stay safe and protect yourself. e that your taxes are filed accurately and in a timely manner.

Life events, such as purchasing a home, going to college or losing a job, may make you eligible for certain tax benefits. Other circumstances, such as getting married or divorced, welcoming a child or experiencing the death of a spouse or a dependent you claim, could also affect your tax benefit eligibility and filing status. These changes could mean you qualify for tax credits like the Child Tax Credit (CTC), the Earned Income Tax Credit (EITC), the Child and Dependent Care Credit and Credit for Other Dependents(ODC).

• For 2024, the CTC is worth up to $2,000 for each qualifying child. A child must be under age 17 at the end of 2024 to be a qualifying child.
• For 2024, the EITC eligible taxpayers with no qualifying children may receive up to $632.
• If your dependent is age 17 or older at the end of 2024, they may qualify for the ODC.

For the Child and Dependent Care Credit, taxpayers may receive up to 35% of their employment expenses. Visit Credits and Deductions for more details.

Energy-related credits and deductions

Clean vehicle tax credit. Inflation Reduction Act of 2022 made changes to clean vehicle purchases. See if you qualify for the new electric vehicles purchased in 2022 or before or the new clean vehicles purchased in 2023 or after credit.

Home energy tax credit. If you make energy improvements to your home, tax credits are available for a portion of qualifying expenses. The credit amounts and types of qualifying expenses were expanded by the Inflation Reduction Act of 2022.

Form 1099-K, Payment Card and Third Party Network Transactions, is an IRS form that is used to report certain payment transactions.

It is important for taxpayers to understand why they received a Form 1099-K, then use the form and their other records to help figure and report their correct income on their tax return. It is also important for taxpayers to know what to do if they received a Form 1099-K and shouldn’t have.

All income, including from part-time work, side jobs or the sale of goods is still taxable. Taxpayers must report all income on their tax return unless it's excluded by law, whether they receive a Form 1099-K, a Form 1099-NEC, Form 1099-MISC, or any other information return.

Consider adjusting your withholding if you owed taxes or received a large refund when you filed. Changing your withholding can help you avoid a tax bill or let you keep more money each payday. Credit amounts may change each year, so visit IRS.gov and use the Interactive Tax Assistant to identify whether you qualify for any tax credits that may call for a withholding adjustment. Life changes – getting married or divorced, welcoming a child, or taking on a second job - may also mean changing withholding.

Use the Tax Withholding Estimator to help you determine the right amount of tax to have withheld from your paycheck. This tool on IRS.gov will help determine if you need to adjust your withholding and submit a new Form W-4 to your employer.

Consider estimated tax payments. If you receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income you should make quarterly estimated tax payments. For estimated tax purposes, the year is divided into four payment periods, with the last payment due in mid-January.

An ITIN only needs to be renewed if it has expired and is needed on a U.S. federal tax return. If you do not renew an expiring or expired ITIN, the IRS can still accept your tax return, but it may delay processing it or delay tax credits owed to you, such as the Child Tax Credit and the American Opportunity Tax Credit, which can impact when you get your tax refund.

If your ITIN wasn't included on a U.S. federal tax return at least once for tax years 2021, 2022 and 2023, your ITIN will expire on December 31, 2024.

The standard mileage rates for 2023 are:

• Self-employed and business: 67 cents/mile 
• Charities: 14 cents/mile 
• Medical: 21 cents/mile 
• Moving (military only):21 cents/mile