Getting Ready To File Your 2024 Taxes? Here Are 3 Tips To Keep In Mind | Global News Avenue

If you’re getting ready to file your 2024 taxes, there are some helpful tips to make the process smoother.

tax season Around the corner, taxpayers can start filing returns on January 27. most people must pass April 15 This year, however, people affected by the California wildfires have until October 15 to submit.

You may already be tracking a long list of things, such as Deductions and points. There are a few more things to keep in mind when preparing to submit.

You may be eligible to file your taxes online directly with the IRS

Last year, the Internal Revenue Service (IRS) launched a direct-file pilot program that allows select taxpayers in 12 states to file their taxes directly with the IRS. Starting in 2025, Direct File is expanded to residents of 25 states.

unlike free files program – which is a public-private partnership between the IRS and eight companies – direct file Program allows qualified taxpayers to electronically submit their taxes directly to the IRS.

However, the Direct File program only supports simpler return taxpayers. For example, you would be eligible to use it if you earned income from gig work or itemized deductions.

it covers taxpayers taking standard deduction And have W-2 salary income, 1099 Int interest income, SSA-1099 social security income, etc. It also covers those who receive child tax credits and premium tax credits.

If you live or work in any of the 25 states listed IRS website In 2024, you may be eligible to use it if you meet the income requirements.

For those paying via Venmo or other payment platforms, the IRS may want to know

Whether you sold pottery on Etsy from a tenant last year or collected rent from a tenant on Venmo, you may have to report the money to the IRS.

Taxpayers who receive payments of $5,000 or more for goods or services in 2024 through a payment app, online marketplace, payment card or other platform will be required to report that income to the IRS.

This may include freelancers, self-employed people, or even people selling personal belongings. This may also apply if you are a landlord and receive rentals on these platforms.

Affected taxpayers should send Form 1099-k Until January 31st. However, even if you don’t receive a form, you still need to report that income on your tax return.

You do not need to report personal payments from family and friends, such as reimbursement of personal expenses. However, people who receive such payments from others may still get a 1099-K, even though they don’t have to report the money, said Chase Insogna, CPA and founder of Insogna CPA.

“If people are sending you money as friends, then it’s a little bit tricky,” Insovna said. “What should you do with (the form)? From a CPA perspective, that’s what we don’t know yet.”

Currently, the IRS recommends that taxpayers in this situation contact the issuer and request a corrected version showing the zero amount. They also recommend sticking with incorrect forms and retaining any correspondence you have with the issuer.

You can contribute to an IRA or HSA before tax day to lower your tax deduction

You have until tax day to file your Individual Retirement (IRA)– Traditional or Roth – HSA through 2024.

“If you’re not contributing to an IRA and have cash flow, we always recommend doing so,” Insogna says.

2024, tradition and Roth Iras is $7,000, while those 50 and older can earn $1,000 in catch-up contributions.

Additionally, you may be able to deduct your Traditional IRA Income contributions, depending on how much you earn and what retirement plan at work covers you. For example, if you are covered by a workplace retirement plan and your single-band salary is less than $77,000, you are eligible to have your entire contribution deducted from your income.

Although you can’t deduct Roth contributions from your income, you can still benefit from your investments because you won’t have to pay taxes on investment gains in retirement.

So does Stephen Lovell, CFP and founder of Lovell Wealth Management Health Savings Account (HSA) due to their tax benefits and noting their Increasingly popular.

“You get a (tax) deduction. If you pay a qualified medical bill out of that account, that also means you’re paying it with untaxed money,” Lovell said.

For the 2024 tax year, the HSA contribution limit is $4,150 for individuals enrolled in a high-deductible health plan (HDHP) and $8,300 for family HDHPs.