Important Updates for the 2024 Tax Season

As we approach the tax season for the year 2023, there are several crucial updates and changes that taxpayers need to be aware of. From filing deadlines to adjustments in standard deductions and tax credits, here’s a comprehensive overview of what you need to know before filing your Form 1040 or 1040-SR.

  1. Filing Deadlines:
  •    The standard filing deadline for most taxpayers is April 15, 2024.
  • Residents of Maine or Massachusetts have until April 17, 2024, due to Patriots’ Day and Emancipation Day holidays.
  •  Oct. 15: Due date for extension filers. Extension is only to file the taxes not for the balance due.

 

  1. Increased Standard Deduction Amounts:
  •     Single or Married filing separately: $13,850.
  •    Married filing jointly or Qualifying surviving spouse: $27,700.
  •    Head of household: $20,800.

 

  1. Additional Child Tax Credit Increase:
  •     The maximum additional child tax credit amount has increased to $1,600 for each qualifying child.

 

  1. New Clean Vehicle Credit:
  •    The credit for new qualified plug-in electric drive motor vehicles is now known as the clean vehicle credit.
  •    Changes in the maximum credit amount and requirements. Refer to Form 8936 for details.

 

  1. Previously Owned Clean Vehicle Credit:
  •     Available for clean vehicles acquired and placed in service after 2022. Check Form 8936 for more information.

 

  1. New Lines on Schedule 3:
  •    Schedule 3 has new lines, including separate lines for residential clean energy credit and energy-efficient home improvement credit.
  •    Line 6m for reporting the credit for previously owned clean vehicles.

 

  1. Credits for Qualified Sick and Family Leave Wages:
  •    Credits for qualified sick and family leave wages paid in 2023 are now reported on Schedule 3, line 13z.

 

  1. Alternative Motor Vehicle Credit Expiration:
  •    The alternative motor vehicle credit has expired.

 

  1. Self-Employed Health Insurance Deduction:
  •     Changes in the process for calculating the deduction. Use Form 7206 instead of Pub. 535.

 

  1. Qualified Charitable Distribution One-Time Election:
  •      Beginning in 2023, a one-time distribution up to $50,000 from an individual retirement account to charities is allowed.

 

  1. Increase in Required Minimum Distribution Age:
  •     If you reach age 72 in 2023, the required beginning date for your first required minimum distribution is April 1, 2025.

 

  1. Insurance Premiums for Retired Public Safety Officers:
  •     Eligible retired public safety officers can exclude up to $3,000 of distributions from their retirement plan used to pay for health insurance premiums.

 

  1. Exception to 10% Additional Tax for Early Distributions:
  •     Exceptions include distributions in federally declared disasters to terminally ill individuals and certain firefighters meeting age or years of service requirements.

Staying informed about these updates is crucial for a smooth tax filing process in 2024. Make sure to review the specific forms and publications mentioned for detailed information on each change. As the tax landscape evolves, being aware of these adjustments will help you navigate the filing season with confidence.

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