Reporting threshold
There are no changes to what counts as income or how tax is calculated. The reporting threshold for third party settlement organizations, which include payment apps and online marketplaces, was changed to $600 by the American Rescue Plan Act of 2021.
Standard deduction increase
Here are the new 2022 standard deduction amounts: Married filing jointly: $25,900 ($800 increase) Single and married filing separately: $12,950 ($400 increase) Head-of-household filers: $19,400 ($600 increase)
H.R. 5376, or the Inflation Reduction Act of 2022, would, among other things: (1) establish a 15% corporate minimum tax; (2) provide for increased Internal Revenue Service (“IRS”) enforcement; and (3) modify the carried interest rules to apply short-term capital gains rates.
Rise in standard deductions
For heads of households, it is $22,500 for tax year 2025, up $600 from tax year 2024. For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction increases to $15,000 for 2025, up $400 from 2024.
The lingering impacts of the pandemic, including changes in income sources, tax relief expirations, and new legislation, have all contributed to changes in tax liability. These factors might explain why you owe taxes in 2024.
For 2024, the additional standard deduction amounts for taxpayers who are 65 and older or blind are: $1,950 for Single or Head of Household (increase of $100) $1,550 for married taxpayers or Qualifying Surviving Spouse (increase of $50)
For 2022, as in 2021, 2020, 2019 and 2018, there is no limitation on itemized deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act.
For single taxpayers and married individuals filing separately, the standard deduction rises to $13,850 for 2023, up $900, and for heads of households, the standard deduction will be $20,800 for tax year 2023, up $1,400 from the amount for tax year 2022.
Common reasons include underpaying quarterly taxes if you're self-employed or not updating your withholding as a W-2 employee. You may also owe if you collected unemployment benefits, which are taxable.
Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits. More than $34,000, up to 85% of your benefits may be taxable.
Under the guidance TPSOs will be required to report transactions when the amount of total payments is more than $5,000 in 2024; more than $2,500 in 2025; and more than $600 in calendar year 2026 and after.
For tax year 2025, the threshold is $2,500, regardless of the number of transactions. For tax year 2026 and after, the threshold is $600, regardless of the number of transactions.
Payments you collect on the Cash App only count as income if you received them in exchange for goods or services. In contrast, personal payments between friends and family don't count, and you don't have to report them on your taxes.
If you didn't account for each job across your W-4s, you may not have withheld enough, so your tax refund could be less than expected in 2025. Or, if you had a salary increase in 2024 but didn't update your tax withholding accordingly, you could receive a smaller refund.
The most common itemized deductions are those for state and local taxes, mortgage interest, charitable contributions, and medical and dental expenses. The combined revenue cost of those four deductions is around $114 billion for fiscal year 2022 (table 1).
Starting with your 2022 return, taxpayers can no longer claim cash donations to charity while taking the standard deduction. This is a change from last year, where those married filing jointly were able to claim $600 in cash contributions and those filing single were able to claim $300 without itemizing.
At What Age Can You Stop Filing Taxes? Taxes aren't determined by age, so you will never age out of paying taxes. People who are 65 or older at the end of 2024 have to file a return for tax year 2024 (which is due in 2025) if their gross income is $16,550 or higher.
You report the taxable portion of your Social Security benefits on line 6b of Form 1040 or Form 1040-SR. Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.
Yes, Medicare premiums are tax deductible as a medical expense as long as you meet two requirements. First, you must itemize your deductions on your tax return to deduct them from your taxable income. Second, only medical expenses that exceed 7.5% of your adjusted gross income (AGI) are deductible.