Save Me Taxes: Latest Finance News and Updates (2024)

FAQs

What is the new IRS question that must be answered? ›

Everyone who files Forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, 1120 and 1120S must check one box answering either "Yes" or "No" to the digital asset question. The question must be answered by all taxpayers, not just by those who engaged in a transaction involving digital assets in 2023.

The IRS can help taxpayers get forms and publications and answer a wide range of tax questions.

Tax Relief for American Families and Workers Act of 2024

This title allows taxpayers to delay the date on which they must begin deducting their domestic research or experimental research costs over a five-year period until 2026. Taxpayers may therefore expense such costs incurred between 2022-2026.

The CP14 is a balance due notice telling you that you owe money for unpaid taxes. The notice requests that a payment be made within 21 days. If the balance due is not fully paid within 60 days, the IRS can proceed with collection activity. The first thing to know is don't panic!

Form 1040. Annual income tax return filed by citizens or residents of the United States.

Reporting threshold

For tax year 2023, payment apps and online marketplaces are required to file a 1099-K for personal or business accounts that receive over $20,000 in payments from over 200 transactions for goods or services. There are no changes to what counts as income or how tax is calculated.

A portion of your wages are protected from levy. The protected amount is the equivalent to the standard deduction, plus any deductions for personal exemptions. The IRS can't seize certain personal items, such as necessary schoolbooks, clothing, undelivered mail and certain amounts of furniture and household items.

Inheritances, gifts, cash rebates, alimony payments (for divorce decrees finalized after 2018), child support payments, most healthcare benefits, welfare payments, and money that is reimbursed from qualifying adoptions are deemed nontaxable by the IRS.

The IRS uses a computerized process specifically designed to identify irregularities in tax returns. Known as Discriminant Information Function (DIF), it scans every tax return received by the IRS. The task of detecting unreported income is a difficult one.

The new ”$600 rule”

Under the new rules set forth by the IRS, if you got paid more than $600 for the transaction of goods and services through third-party payment platforms, you will receive a 1099-K for reporting the income.

Why are people owing taxes in 2024? ›

As the 2024 tax deadline approaches, you may be in the position of expecting to owe money to the IRS. This may be the case if you made over $20,000 from a side hustle in 2023, you earn self-employment income (such as through a freelance gig), or you entered a new tax bracket.

Bottom line. So far, the average tax refund in 2024 is outpacing 2023. If you're among the millions of Americans getting something back from the IRS, make the most of it — either by paying down debt, depositing it in an interest-earning account or financing a major purchase. Subscribe to the CNBC Select Newsletter!

Never Lie. Never Answer Questions That You Don't Understand Fully. Never Invite the IRS into Your Home or Workplace. Never Make Promises to Pay Unless You Are Absolutely Sure You Can.

What this notice is about. Your tax return shows a different name and/or ID number from the information we have on file for you or from the information from the Social Security Administration. We previously sent you a notice asking you to provide us some updated information.

The IRS temporarily suspended the mailing of certain automated reminder notices for unpaid taxes in February 2022, as announced in IR-2022-31. In 2024, the IRS will resume mailing these notices for taxable years 2021 and earlier.

You may have to report transactions with digital assets such as cryptocurrency and non fungible tokens (NFTs) on your tax return. Income from digital assets is taxable.

Digital assets include photos, manuscripts, documents, data, cryptocurrencies, and much more. Digital assets are increasingly important because they are becoming more a part of our professional and personal lives while continuing to be essential for businesses and governments.

Social Security numbers and birth dates for those who were named on the tax return. An Individual Taxpayer Identification Number letter if the you have one. Your filing status. The prior-year tax return.

”At any time during 2023, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”