Income tax brackets and standard deductions have risen with inflation! This is good news as it means more of your income could fall into lower tax brackets, and the standard deduction has increased, potentially simplifying your filing.

The Inflation Reduction Act of 2022 significantly expanded tax credits for home improvements that make your home more eco-friendly!  The existing Residential Energy Credit has been revamped and renamed the Energy Efficient Home Improvement Credit. This credit now covers 30% of qualifying expenses, up to $1,200 per year. Insulation, door and window upgrades, air conditioners, heat pumps, and even a home energy audit may all be eligible!  Visit Energy Star for more information about eligibility, here: 

https://www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits

Claim up to a $7,500 credit on a new electric vehicle, or up to $4,000 on a used one. This credit cannot reduce your income tax liability below zero, and any credit not used in the year of purchase will be lost. 

Claim 30% of eligible solar costs as a tax credit. This credit cannot reduce your income tax liability below zero; however, the unused credit amount will roll forward to future tax years. 

New legislation regarding the treatment of Hurricanes Ian, Idalia, Nicole, Fiona, Debby, Helene, and Milton as qualified disaster events for the purposes of determining the tax treatment of certain disaster-related personal casualty losses was signed into law on December 13th, 2024.

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​Click here for the latest information and our Hurricane losses checklist.

The IRS has delayed the $600 reporting threshold for third-party platforms like Venmo and PayPal until 2026 (this does not apply to Zelle). This means your 2024 income from those platforms won't be automatically reported unless you exceed the $5,000 threshold. The payment platforms will issue you a Form 1099-K if you receive payments totaling $5,000 or more in 2024, regardless of the number of transactions. Whichever platform you use, you should always track your income for accurate tax reporting.

​ALERT [updated Feb. 19, 2025]: Beneficial ownership reporting requirements are back in effect, with a new deadline of March 21, 2025 for most companies. FinCEN will assess its options for further modifying deadlines. For more info, see notice.

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The CTA came into effect on January 1st, 2024, requiring transparency regarding the beneficial owners of certain entities. By January 1, 2025, domestic reporting companies (corporations, LLCs, etc.) formed before January 1st, 2024, must file a Beneficial Ownership Information (BOI) report with FinCEN. The report must disclose individual owners with significant control or ownership (25%+). New entities need to report within 90 days of formation. Change in ownership must be reported within 30 days. Penalties for non-compliance can be hefty ($500 per day), so ensure you understand your reporting obligations and deadlines. Full details can be found here: https://www.fincen.gov/boi.
 

The standard mileage rate for business use of personal vehicles increased to $0.67 per mile for tax year 2024 and $0.70 for 2025. Detailed mileage logs are not required for filing your return, but they may be needed in case of audit.  We have a checklist to help you collate your vehicle expenses.  Don't forget to take your mileage reading at the start of the year!  There are various apps that can help you track your mileage during the year.