As we approach tax season, many taxpayers are just starting to prepare their returns. Nearly half of them wait until March to file, and if you're one of them, don't worry — there's expert advice available.
H&R Block Tax Institute vice president Andy Phillips joins Wealth host Brad Smith to highlight key tax changes for 2024.
Phillips explains that one of the biggest changes involves the 1099-K form: "The threshold to receive a form 1099-K went down drastically from 2023 to 2024. From you had to have over $20,000 in transactions, or at least $20,000 in transactions, and over 200 transactions during the year for 2024, went all the way down to $5,000 and you just have to have one transaction."
He also discusses future shifts in virtual currency reporting this year. "Starting in 2025, platforms will be required to issue you a new form called 1099-DA for crypto transactions," Phillips explains.
Additionally, Phillips sheds light on the Child Tax Credit, noting how the refundable portion of the child tax credit is $1,700.
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This post was written by Josh Lynch