Uncle Sam wants more of your money than ever before, but this time you’re going to be ready with a tax preparation strategy that would make even the IRS auditors jealous.
At a Glance
- The 2024 tax filing deadline is April 15, 2025, with potentially increased standard deductions that could benefit taxpayers
- The Additional Child Tax Credit has increased to $1,700 per qualifying child, while the base Child Tax Credit remains at $2,000
- 1099-K reporting requirements have changed with a new threshold of $5,000, potentially affecting millions of Americans with side hustles
- Free filing options include IRS Free File, Direct File, and assistance programs that can save you money while navigating complex new tax codes
Uncle Sam’s Ever-Growing Appetite
The 2024 tax season arrives with new rules, increased deductions, and a renewed hunger from Washington. While the standard deduction offers modest increases—$14,600 for single filers and $29,200 for married couples—the reality is that inflation and higher living costs may offset these gains. For those who earn extra income from freelancing or side gigs, the lowered $5,000 1099-K threshold now brings millions more Americans into IRS crosshairs.
Preparation: Your Best Defense
Experts advise starting with your 2023 tax return as a blueprint. You’ll need to track income from every possible source—wages, investments, gambling winnings, rental income, and even virtual currency transactions. Missed the deadline? Interest and penalties kick in fast, and while you can file an extension, payments are still due on April 15.
Watch a report: Tax questions to ask if you still haven’t filed your 2024 return.
Credits That Actually Help
For families, the Child Tax Credit remains at $2,000 per child, with an Additional Child Tax Credit bumping up to $1,700—offering welcome relief amid economic uncertainty. Residents of Puerto Rico now qualify with fewer restrictions, and green vehicle buyers can still tap into EV credits, though these come with strict income and vehicle price caps.
Late Filers Beware
If you missed the deadline, penalties have likely already started to accrue. “The IRS won’t negotiate with you until they have a return on file,” notes CBS News. The IRS offers payment plans and, in dire cases, an “Offer in Compromise”—but expect intrusive paperwork and intense scrutiny.
Free Filing: Use With Caution
The IRS promotes Direct File and Free File programs, which are useful but not always ideal for complex tax situations. Military families can benefit from MilTax, and the elderly can find help through VITA/TCE services. Still, it’s wise to remember that government help often doubles as government data collection.
Taxpayers who prepare early and document thoroughly can shield themselves from unnecessary payments—and avoid becoming another line item in Washington’s spending spree.
