Save Me Taxes: Latest Finance News and Updates (2024)

FAQs

What is the new IRS question that must be answered? ›

Everyone who files Forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, 1120 and 1120S must check one box answering either "Yes" or "No" to the digital asset question. The question must be answered by all taxpayers, not just by those who engaged in a transaction involving digital assets in 2023.

You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.

The standard deduction amounts for 2024 have increased to $14,600 for single filers, $29,200 for joint filers and $21,900 for heads of household. People 65 or older may be eligible for a higher amount. The 2024 standard deduction is taken on tax returns filed in 2025.

The IRS can help taxpayers get forms and publications and answer a wide range of tax questions.

Form 1040. Annual income tax return filed by citizens or residents of the United States.

Reporting threshold

For tax year 2023, payment apps and online marketplaces are required to file a 1099-K for personal or business accounts that receive over $20,000 in payments from over 200 transactions for goods or services. There are no changes to what counts as income or how tax is calculated.

Taxes aren't determined by age, so you will never age out of paying taxes. Basically, if you're 65 or older, you have to file a return for tax year 2023 (which is due in 2024) if your gross income is $15,700 or higher.

Social Security tax FAQs

Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.

When do seniors have to file a tax return? For tax year 2023, seniors filing as single or married filing separately will usually need to file a return if both: you are at least 65 years of age. your gross income for tax is $15,700 or more.

IRS extra standard deduction for older adults

For 2024, the additional standard deduction is $1,950 if you are single or file as head of household. If you're married, filing, jointly or separately, the extra standard deduction amount is $1,550 per qualifying individual.

What is the extra tax credit for 2024? ›

The CTC is worth up to $2,000 per child for the 2024 tax year. The refundable portion of the CTC, called the Additional Child Tax Credit (ACTC), increased to $1,700 in the 2024 tax year. The CTC operates as a partially refundable tax credit, not as monthly payments as in some prior years.

A portion of your wages are protected from levy. The protected amount is the equivalent to the standard deduction, plus any deductions for personal exemptions. The IRS can't seize certain personal items, such as necessary schoolbooks, clothing, undelivered mail and certain amounts of furniture and household items.

Selection for an audit does not always suggest there's a problem. The IRS uses several different selection methods: Random selection and computer screening - sometimes returns are selected based solely on a statistical formula. We compare your tax return against "norms" for similar returns.

The IRS uses a computerized process specifically designed to identify irregularities in tax returns. Known as Discriminant Information Function (DIF), it scans every tax return received by the IRS. The task of detecting unreported income is a difficult one.

You may have to report transactions with digital assets such as cryptocurrency and non fungible tokens (NFTs) on your tax return. Income from digital assets is taxable.

Digital assets include photos, manuscripts, documents, data, cryptocurrencies, and much more. Digital assets are increasingly important because they are becoming more a part of our professional and personal lives while continuing to be essential for businesses and governments.

Social Security numbers and birth dates for those who were named on the tax return. An Individual Taxpayer Identification Number letter if the you have one. Your filing status. The prior-year tax return.

”At any time during 2023, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”