Here are the biggest tax changes to be aware of this year.
Transcript:
ANDY PHILLIPS: A couple big changes that people need to be aware of for this year are one. A lot more people are going to get what we call form 1099K. Who’s going to get this? Just a couple examples is if you sell things online through an online marketplace, like maybe say like an Etsy, or you provide services or sell goods, but you take payment through a third party payment platform, like maybe a Venmo or a PayPal. A lot of people are going to get a K this year for the first time. And why that is, is because in prior years, you had to have over $20,000 in gross proceeds and over 200 transactions. Well, for this year, for 2024, it’s just $5,000. It’s going to go down even more for 2025, where it’s 2,500, and then for future years, only $600.
So that’s a big one to know for this year and for the future, because you may see a new tax form and you need to know how to handle it on your return. Another big one is electric vehicles and the clean vehicle credit. If you purchased a vehicle from a dealership, you may have had the option to transfer that credit to the dealership at the time of purchase to help reduce your purchase price. If you did that, you need to report that on your tax return. If you didn’t do that and you think you purchased an eligible vehicle, make sure you have that vehicle information when you go to File your tax return. So you can claim that credit, which can be up to $7,500 for a qualifying new vehicle.
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