Sewell Tax Services Inc

The 2025 tax filing season will reflect continued IRS progress to modernize and add new tools and features to help taxpayers. Since last tax season, the improvements include more access to tax account information from text and voice virtual assistants, expanded features on the IRS Individual Online Account, more access to dozens of tax forms through cell phones and tablets and expanded alerts for scams and schemes that threaten taxpayers.

This year, Direct File will be available starting Jan. 27 to taxpayers in 25 states.

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The Internal Revenue Service today announced Monday, Jan. 29, 2024, as the official start date of the nation's 2024 tax season when the agency will begin accepting and processing 2023 tax returns

IRS Delays Form 1099-K Reporting Threshold

The IRS announced a delay in the new $600 reporting threshold for Form 1099-K for third-party organizations for the year 2023. The delay was enacted to reduce confusion among taxpayers, tax professionals and payment processors.

The IRS plans to treat 2023 as a transition year, wherein reporting will only be required if the taxpayer receives over $20,000 and has more than 200 transactions. The IRS also plans to implement a $5,000 threshold for tax year 2024, in phase with the $600 reporting threshold required by the American Rescue Plan Act. It aims to minimize burden and provide easier reporting requirements for taxpayers, working closely with third party groups, tax professionals and others to ensure compliance with the law.

New Tax Brackets for the tax year 2024

IRS provides tax inflation adjustments for tax year 2024 | Internal Revenue Service IR-2023-208, Nov. 9, 2023 — The Internal Revenue Service today announced the annual inflation adjustments for more than 60 tax provisions for tax year 2024, including the tax rate schedules and other tax changes.

The IRS announced that it will begin accepting individual returns Jan. 23, 2023, which many mark as the official opening of tax season.

Some of the credits below can help the individual when filing your taxes.

1.The earned income tax credit (EIC) is a refundable tax credit that provides a tax break to taxpayers with low to moderate income.

2. As your children grow up and go off to college, there are tax benefits available to help offset the rising costs of education.


3.While the IRS dropped the requirement that TPSOs issue Forms 1099-K based on the $600 threshold, the announcement came just a few weeks before the forms were scheduled to go out, and it’s likely that some organizations will simply go ahead and issue the form to taxpayers and the IRS. Additionally, a fact sheet issued by the IRS Dec. 28 makes it clear that taxpayers should not ignore the form.

For further information please reach out to Sewell Tax Services Inc at 1-888-656-2224/[email protected] for more information .

Happy Thanksgiving from Sewell Tax Services