As we dive into the 2025 tax filing season, the IRS wants to remind everyone to get prepared and stay informed about some important changes that could impact your 2024 tax returns.

Updates to Additional Child Tax Credit for tax year 2024

• The maximum additional child tax credit is now $1,700 per qualifying child.
• Bona fide residents of Puerto Rico can claim the additional child tax credit with one or more qualifying children.
• Refunds claiming the additional child tax credit will be issued after mid-February 2025.

Other changes for tax year 2024

• Standard deduction increase:
• Single/married filing separately: $14,600
• Head of household: $21,900
• Married filing jointly/qualifying surviving spouse: $29,200
• Child Tax Credit enhancements:
• Initial child tax credit amount is $2,000 per qualifying child.
• Phase out starts at AGI over $200,000 ($400,000 for joint returns).
• Qualifying child must be under 17 at the end of 2024.
• Earned Income Tax Credit:
• Claim without a qualifying child if aged between 25 and 65.
• Adoption Credit:
• Both credit and exclusion are $16,810 per eligible child.
• Phases out starting at modified AGI of $252,150; completely phased out at $292,150.
• Clean Vehicle Credit:
• Reported on Form 8936 and Schedule 3 (Form 1040), line 6f.
• Previously owned Clean Vehicle Credit:
• Available for vehicles acquired and placed in service after 2022.

More details can be found in Publication 17.

IRA Contribution Limit

• Increased to $7,000 ($8,000 for age 50+) from $6,500 ($7,500 for age 50+).

1099-K Reporting Requirements

• TPSOs must report transactions exceeding $5,000 in total payments for 2024. See Notice 2024-85 for transition relief details.