When filing your taxes, checking “Yes” to the two questions related to Elections Canada ensures that you’re on the list of electors at your current address and ready to vote in the next federal general election. The 2024 tax season has introduced many significant tax changes, whether you are filing a personal or business tax return—or both. Understanding the tax changes will help you take advantage of opportunities to pay less to the IRS this year. Of course, there is uncertainty currently regarding how layoffs at the IRS may affect the 2025 filing season. At this point in time, there have been no reports of widespread processing delays.
Energy Efficiency Tax Credits
Hedge funds may be aggressively managed or make use of derivatives and leverage in both domestic and international markets with the goal of generating high returns. Hedge funds are generally only accessible to accredited investors as they require less SEC https://hkcomputers.co.za/what-are-accounting-advisory-services/ regulations other than funds. Exchange-Traded Fund (ETF)An exchange-traded fund (ETF) is a marketable security that tracks a stock index, a commodity, bonds or a basket of assets. ETFs differ from mutual funds because shares trade like common stock on an exchange.
Tax season bottom line: When are taxes due?
- Starting April 1, 2023, contributions to an FHSA are generally deductible and qualifying withdrawals made from an FHSA to buy or build a qualifying home are tax-free.
- CommodityA commodity is a physical substance or raw material, which is interchangeable with another product of the same type and which investors buy or sell, usually through future contracts.
- The IRS also adjusts the standard deduction to reflect the rising cost of living every year.
- Should show an updated status by Feb.17 for most early EITC/ACTC filers.
- Business owners may be surprised when claiming bonus depreciation, an additional first-year depreciation deduction.
- Second, filing electronically reduces the risk of errors and speeds up processing.
- Plus, the software helps you track deductions, credits, and contributions so you don’t miss any opportunities for tax savings.
That rule says millions of people who tax season paid at least $600 for goods and services through a third-party network (think PayPal, Square, Venmo, Stripe, Cash App, etc.) could receive a Form 1099-K. Most refunds will be issued in less than 21 days with Earned Income Tax Credit refunds expected to be available starting Feb. 27. Additional Child Tax Credit refunds will also be available in mid-February.
- The IRS estimates that 30 million people could be eligible to participate in Direct File, saving them time and money when filing their returns.
- As credits, deductions, and tax laws change frequently, it pays to plan ahead to get all the tax breaks you deserve and take advantage of deductions and credits you qualify to receive.
- Her work has been featured in Yahoo Finance, Bankrate.com, SmartAsset, Black Enterprise, New Orleans Agenda, and more.
- When anyone sells stocks, bonds or other investments, they’re required to report any profits (capital gains) or losses on their tax returns, as well as any interest or dividends earned.
- Don’t forget to check for any state tax and local tax updates as well, and remember — TaxAct is here to guide you when you’re ready to file.
- The income tax bracket changes mean that, as with higher standard deductions, taxpayers can expect to see a slightly smaller tax bill.
- By making this change, the CRA will reduce each paper package by approximately 30 pages, or about 20%.
When is Tax Day?
With the right preparation, filing your tax return can be a smooth and stress-free experience. For single taxpayers and married individuals filing separately in tax year 2025, the standard deduction is rising to $15,000 — up $400 from 2024. When filing your taxes, you can choose to claim the standard deduction or to itemize your deductions. The IRS estimates that 90% of tax filers claim Mental Health Billing the standard deduction, an amount set by the agency that’s linked to your filing status and other factors. More taxpayers are facing IRS penalties for underpayment, often due to freelance income where taxes aren’t automatically withheld.
- Mutual FundA mutual fund is a collection of stocks, bonds, or other securities purchased and managed by an investment company with funds from a group of investors.
- The 2024 tax season is approaching, so be prepared for any changes that could affect your return.
- The Internal Revenue Service (IRS) has begun accepting tax returns and payments for 2024.
- For the tax year 2024, payment processors will report transactions of $5,000 or more on Form 1099-K.
- That means the agency will begin accepting and processing 2023 tax returns that day for individual filers who want to get an early start.
While many filers can easily navigate their taxes on their own, there are situations where a tax professional can be helpful. If you own a business, have investments, or face a complicated tax situation, seeking professional advice can ensure you’re handling everything correctly. As credits, deductions, and tax laws change frequently, it pays to plan ahead to get all the tax breaks you deserve and take advantage of deductions and credits you qualify to receive. If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed, up to a maximum credit of $7,500 for each claim you are eligible to make.
Credits & Deductions
Before filing your tax return, you should sign up for direct deposit. By doing so, you’ll receive your tax refunds and benefit and credit payments faster and securely, directly into your bank account. As you gather your financial documents, choose your preferred tax software and prepare to file, you may want to read up on some rule changes that could affect you. Among them are higher standard deduction amounts, expanded income tax brackets and changes to business deductions. While the IRS expects more than 140 million tax returns to be filed by April 15, only about 89 million had been received by March 28, according to the most recent IRS data.
standard deduction rates
As you can see, income thresholds have been slightly adjusted in 2024, so understanding where your income falls within these brackets is crucial. If you’re close to the next tax bracket, consider strategies like contributing to retirement accounts or maximizing deductions to keep your income in a lower bracket. The IRS announced in October that taxpayers will again see higher standard deductions for 2025. For couples who file jointly, that standard deduction will be $30,000 for 2025, an $800 jump from the year prior.