What to know about filing taxes in 2024 : NPR

irs tax season

But all taxpayers, regardless of income, who need more time to file a return can use IRS Free File as an easy and quick way to electronically file for a six-month extension before April 15, 2024. An extension will help to avoid penalties and interest for failing to file on time, and gives taxpayers until Oct. 15, 2024, to file. However, they still must pay what they owe by the April 15 deadline. Many tax benefits during the pandemic expired and no longer apply this tax filing season, such as the enhanced child tax credit. Parents who received $3,600 per child during the pandemic will now get $2,000, and that’s only available for parents with children under age 17.

irs tax season

For this tax season, parents with one child can only claim up to 35 percent of $3,000 in qualifying expenses, equivalent to a maximum amount of $1,050. Fewer filers will be able to qualify for these credits because the income qualification tax season has reverted to what it was before the pandemic, Cagan said. Parents can only receive this credit in full this tax season if they made $15,000 or less, a significant drop from the previous $125,000 income threshold.

Understanding Tax Season

That’s a $6,000 increase over last year’s income limit for the service. In the past, not many filers eligible for Free File used the program. The IRS has launched a pilot program for Direct File, its in-house tax preparation and filing system this tax season. The program enables eligible taxpayers from a dozen states to file their federal returns directly with the IRS at no cost. The pilot is currently limited in scope, designed for straightforward tax returns in twelve states. However, several hundred taxpayers will be able to participate in the program as tax season progresses.

  • Understanding the tax changes will help you take advantage of opportunities to pay less to the IRS this year.
  • Under the federal Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) refunds before mid-February.
  • Free access to online products is only available by starting from IRS Free File.
  • WASHINGTON — As the end of tax season draws near, the Internal Revenue Service reminds taxpayers there’s an easy way to get a tax filing extension through the Free File program.

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This year it’s a slow crawl to financial aid packages for students

The IRS recently announced that it won’t challenge the taxability of most special state payments. However, the agency has said that amounts issued in some states, including Minnesota Walz checks and Arizona Families Tax Rebates, are considered taxable income. With the tax season starting, it’s good to know the standard deduction amounts, (which, due to adjustments for inflation, are higher than last tax year) if you don’t already. To learn more see our guide to the standard deduction for 2023 and 2024.

  • If that date falls on a weekend, the deadline is delayed until the following Monday.
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  • Taxpayers can setup a plan using the Online Payment Agreement in a matter of minutes.
  • Most individuals and businesses start receiving the needed documents to fill out their tax forms in January.
  • In 2020, all U.S. taxpayers got a three-month postponement for filing their 2019 taxes due to the onset of the COVID pandemic.
  • Lawmakers were trying to pass the changes to the CTC (and other proposed changes to research and development credits for businesses) before the tax season began.
  • Many taxpayers wait to file until just before the deadline, but there is no need to put it off until the last minute.

The IRS Direct File pilot will be rolled out in phases as final testing is completed and is expected to be widely available in mid-March to eligible taxpayers in the participating states. The IRS expects to receive more than 168 million individual tax returns this year — underscoring the importance of filing early and preparing your information carefully. The agency started accepting 2022 tax returns on Jan. 23, and most taxpayers have until April 18 to file — three extra days than usual. While filing sooner means getting a refund sooner if you’re expecting one, experts also caution taxpayers not to rush until they’ve pulled together all the relevant tax forms.

U.S. Government Shared Services

The IRS has just announced that the start of the 2023 tax season would officially begin on January 23 and is expected to end on April 18—adding an additional three days. But the IRS still says that visiting the website IRS.gov, is the fastest way to get tax refund information and answers to common tax questions. The agency also says direct deposit is the quickest way to get your tax refund if you’re due one. Starting your filing process early gives you the time you need to collect the evidence needed to claim all of your deductions.

irs tax season

The residential clean energy credit increased, so now you can subtract 30 percent of the installation costs for a home’s solar heating, electricity and other solar products. The credit has no cap or income limitations, and second or vacation homes are also eligible for the credit. Because the government didn’t distribute stimulus checks in 2022, you won’t need to worry about receiving letters from the IRS or claiming a recovery rebate credit. Our experts have been helping you master your money for over four decades.