2024 Tax Filing – Key Updates You Should Know

(For Tax Year 2024, Filed in 2025)

Staying informed about annual tax law changes can help you maximize benefits and avoid surprises.
Here’s a quick summary of the most important updates for the 2024 tax year.

1. Higher Standard Deduction

• Single / Married Filing Separately: $14,600 (was $13,850)
• Head of Household: $21,900 (was $20,800)
• Married Filing Jointly: $29,200 (was $27,700)

2. Increased IRA Contribution Limits

• Under 50: $7,000
• Age 50 or older: $8,000 (Both up $500 from last year)

3. 1099-K Reporting Threshold Raised

• Third-party payment platforms (PayPal, Venmo, etc.) now report income starting at $5,000
• Previously: $600 threshold

4. IRS Online Account Upgrades

• New tools for:
  • Viewing & signing tax authorizations
  • Accessing tax history & transcripts
  • Scheduling payments & managing bank details

5. Emergency Retirement Withdrawals

• Withdraw up to $1,000 for emergencies without the 10% early withdrawal penalty (taxes may still apply)

6. Updated RMD Rules for Inherited Accounts

• If original owner had begun RMDs: Annual RMDs must continue for nine years, full withdrawal by year 10
• If original owner had not begun RMDs: No annual RMDs required for nine years, full withdrawal by year 10

Quick Reference Table