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This article outlines the Tax Law Changes for Tax Year 20232024. |
Third-Party Network Transactions (1099-K) Reporting Requirements
The IRS has delayed the 1099-K reporting requirements for tax year 2022 and 2023 (see IR-2023-221)
Beginning with tax year 2024, individuals who receive $5,000 or more through a third party network transaction will receive Form 1099-K
This includes apps such as Venmo, Uber, Lyft, Cash App, PayPal, E-bay, etc.
Taxpayers must report Form 1099-K on their tax return as income if the funds were received for the sale of goods and services
2024 will be treated as a “phase-in year” this means that following 2025 we can anticipate the $600 threshold to take effect
Many taxpayers may still receive Form 1099-K in 2023 even though the IRS has delayed the reporting for the third party transactions, keep in mind taxpayers should be reporting all income for goods and services, regardless of the IRS reporting requirements
If taxpayer receives an incorrect 1099-K, they must contact the issuer, not the IRS
Standard Business Mileage Rate
65.5 67 cents per mile
Additional Child Tax Credit
Increased to $1,700
Standard Deductions Adjusted For Inflation
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Earned Income Tax Credit
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Clean Vehicle Credit (Form 8936)
Replaced the Plug-in Electric Drive Vehicle Credit
Nonrefundable credit
Does not carry forward to future tax years
Maximum amount of $7,500 (new vehicles) $4,000 (used vehicles)
New Vehicle Qualifications
Vehicles must be for your own use (not for resale)
Vehicle must be mainly used in the United States
MAGI can not exceed $300,000 (MFJ), $225,000 (HOH), $150,000 (all others)
Truck, Van, SUV must be $80,000 or less, all other vehicles must be $50,000 or less
Final assembly must have been in North America
Vehicles placed in service after April 18, 2023 must meet critical mineral requirement/critical battery requirement
When the vehicle is purchased, the seller MUST give the taxpayer information regarding qualifications. Sellers must also register online and report the information to the IRS. If this does not happen, the vehicle is NOT eligible for the credit.
Additional requirements exist for make/model to see the full list of requirements navigate here: https://fueleconomy.gov/feg/tax2023.shtml
Used Vehicle Qualifications
1. Must be purchased from a licensed dealer
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The car must qualify (only one claim per vehicle for its whole existence)
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Maximum sales price of $25,000
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Model must be at least 2 years earlier
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Must weigh less than 14,000 pounds
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The taxpayer must qualify (can only claim this credit once every 3 years)
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Standard Deductions Tax Years 2024-2020 | |||||
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Filing Status | 2024 | 2023 | 2022 | 2021 | 2020 |
Single | $14,600 | $13,850 | $12,950 | $12,550 | $12,400 |
Married Filing Jointly | $29,200 | $27,700 | $25,900 | $25,100 | $24,800 |
Married Filing Separately | $14,600 | $13,850 | $12,950 | $12,550 | $12,400 |
Head of Household | $21,900 | $20,800 | $19,400 | $18,800 | $18,650 |
Qualifying Surviving Spouse | $29,200 | $27,700 | $25,900 | $25,100 | $24,800 |
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For a full list of limits and dollar amounts adjusted for inflation in tax year 20232024, refer to the Tax Toolkit. |