Key tax changes for this filing season

1. 1. Standard Deduction Increased

   The IRS increased the standard deduction again to account for inflation. This may reduce taxable income for many filers who do not itemize.

2. 2. Tax Brackets Adjusted for Inflation

   Income tax brackets were adjusted upward. Some taxpayers may fall into a lower tax bracket even if their income increased slightly.

3. 3. Child Tax Credit Remains Lower Than Pandemic Levels

   The Child Tax Credit has not returned to the higher COVID-era amounts. The credit is limited compared to prior years, and refundability is reduced.

4. 4. 1099-K Reporting Rules Still Evolving

   Payment apps such as Venmo, PayPal, Cash App, and Stripe continue increased reporting. Even small businesses and side hustles may receive 1099-Ks. All income is taxable—even if no form is received.

5. 5. Electric Vehicle (EV) Credits Now Applied at Purchase

   Certain EV credits may be transferred to the dealer at the time of purchase instead of claimed on the return. Eligibility depends on income limits, vehicle qualifications, and battery sourcing rules.

6. 6. Energy-Efficient Home Improvement Credits Expanded

   Credits are available for qualifying energy improvements such as heat pumps, insulation, windows, doors, and HVAC upgrades. Annual caps apply.

7. 7. Retirement Contribution Limits Increased

   Contribution limits increased for 401(k)s, IRAs, and catch-up contributions, providing additional tax-advantaged savings opportunities.

8. 8. Required Minimum Distribution (RMD) Age Changes

   The age to begin Required Minimum Distributions continues to increase, allowing retirees to delay taxable withdrawals longer.

9. 9. Stricter IRS Enforcement on Digital Assets

   Cryptocurrency transactions, including sales, trades, and some transfers, remain under heightened IRS scrutiny. Reporting requirements continue to expand.

10. 10. Business Deductions Under Closer Review

    Meals, vehicle deductions, home office claims, and contractor payments are common audit triggers. Proper documentation is more important than ever.

General information only — not tax advice for your specific return. Jess will apply what actually fits your situation when she prepares your file.