As part of the 2022 Inflation Reduction Act, long-term funding was provided to the IRS for the agency to transform its operations and improve taxpayer service, enforcement and technology. It also directed the IRS to study the possibility of a free, direct e-file program, which the IRS submitted in a report to Congress in May 2023.
Beginning Jan. 1, 2024, the electronic filing threshold for information returns (like 1099-NEC, 1099-Misc or 1099-S forms) will reduce from 250 to 10 for filing season 2024. Until now, only those who filed more than 250 information returns were required to file electronically and the 250-return threshold was applied separately to each type of information return. Now, filers need to combine all information return types they file to determine if they meet the 10-return threshold and the requirement to file electronically applies to them.
When working on people's taxes and have them have a balance due after starting that new job, I have to have a conversation explaining how the new W-4 form works. You know, that form you have to fill out to tell your employer how much money to withhold from your paycheck to cover your tax liability.
If you don't like owning taxes at the end of the year, then here are some things you should know: