2025 Tax Season Guide
As the 2025 tax season gets underway, the Internal Revenue Service (IRS) urges taxpayers to prepare early and stay informed about key changes that could impact their 2024 tax returns.
This guide provides up-to-date information to help you file an accurate return and avoid processing delays. Below are the most relevant aspects to consider:
Tips for an Accurate Tax Return
Deadline: The deadline to file Form 1040(SP) or Form 1040-SR(SP) is April 15th 2025.
Document organization: Make sure you have all your tax documents before filing your return to avoid errors and delays.
IRS Online Account: Creating an online account will allow you to securely access your tax information.
ITIN renewal:If your Individual Taxpayer Identification Number (ITIN) is expired, you may experience delays in the processing of your return.
Major Changes for Tax Year 2024
Additional Child Tax Credit (ACTC)
Increase in credit: The maximum amount of ACTC was increased to $1,700 per qualifying child.
Changes for residents of Puerto Rico: It is no longer necessary to have three or more children to qualify; only one qualifying child will be eligible to apply.
Delay in refunds: Refunds that include the ACTC will not be issued before mid-2019. February 2025.
Standard Deduction
Single or married filing separately: $ 14,600.
Head of the family: $ 21,900.
Married filing jointly or surviving spouse: $ 29,200.
Child Tax Credit (CTC)
Initial amount: It remains in $2,000 per eligible child.
Phasing out: It begins to apply when income exceeds $200,000 ($400,000 for joint returns).
age requirements: The child must be under 17 years old at the end of 2024.
Earned Income Tax Credit (EITC)
age requirements: By 2024, taxpayers without children must be between 25 and 65 years to qualify.
Adoption Credit
Amount: Until $16,810 per eligible child.
Phasing out: Start with income higher than $252,150 and disappears with income of $292,150 or more.
Clean Vehicle Credits
Credit for new vehicles: It is reported in the Form 8936 and Schedule 3 (Form 1040).
Credit for used vehicles: Applies to cars purchased and put into service after 2022.
IRA Contribution Limit Increase
Deadline 2024: It increased to $7,000 ($8,000 for people 50 years or older).
Changes in 1099-K Reports
New threshold: By 2024, payment platforms must report transactions exceeding $5,000.
Free Filing Options
IRS Free File: Available in IRS.gov, offers free tax preparation software.
Direct File: Free IRS option for simple returns in participating states.
MilTax: Free tax service for members of the military community.
VITA and TCE: Free tax assistance programs for eligible individuals.
For more information and additional details, please refer to the Publication 17 (SP) from the IRS or visit IRS.gov.