IRS and State Tax Return Changes by Tax Year
Each year, tax laws affecting individual income taxpayers can change, impacting the deductions and credits available when filing returns. Staying informed about these updates is crucial for taxpayers to maximize their refunds and ensure compliance with the latest regulations.
What Changes Can I Expect This Year for Taxes?
Below, find an overview of IRS tax law or tax return changes by tax year and expected implications for taxpayers. This page is updated as the latest tax changes become available. Find state-related tax return information here.
Tax laws constantly change, expire, are adjusted, or are removed.
You do not need to worry about changing tax laws when you use online tax software like the eFile online tax filing app. eFile.com is updated with the latest IRS data, so your return is always prepared with 100% accuracy based on your entries. Start free and e-file your next tax return so you can be done with IT (IT = Income Taxes).
What Will Be Changing for 2025?
The IRS releases updates and changes for upcoming tax years as laws are processed and developed. The table below will be updated as the IRS issues news updates, publications, and laws.
Various credit, deduction, and income limits adjusted
The following are some of the adjustments or changes that the IRS makes every year to keep up with inflation:
Form 1099-K reporting requirements
Not final: Beginning in 2025, the
1099-K reporting requirements might be reduced to a $600 minimum requirement.
What Changed for 2024 Taxes?
The changes below are all applied to our 15+ free tax calculators and tools that will provide all accurate answers. Get an idea of your taxes using the table below and the free calculators before starting your return on eFile.com so you can better understand your taxes.
Various credit, deduction, and income limits adjusted
The following are some of the adjustments or changes that the IRS makes every year to keep up with inflation:
See
new values for Tax Year 2024
Beginning in 2024, the 1099-K reporting requirements has been reduced to a $5,000 minimum requirement. This has increased the number of tax forms issued to the
gig economy and
independent contractors. The change is part of an annual phasing process to deduce the threshold to as low as $600.
Rather than worry about all the ever-changing tax laws, create a free eFile account and let us keep track of these for you. The eFile Tax App is updated throughout the year to keep up with tax changes so your return is filled in and calculated with IRS data and laws.
How Did Taxes Change for 2023?
Did you know that there are
tax credits you could qualify for on your 2023 tax return, due in 2024 if you purchase an electric vehicle (EV) in 2023 or after? The EV Tax Credit has been around for years, worth up to $7,500, which you could claim as a nonrefundable tax credit. Beginning in 2023, you may be able to claim a fully refundable payment of $7,500 for purchasing a new plug-in electric vehicle or hybrid. See details on the new
Clean Vehicle Credit.
For 2023, the $600 1099-K threshold was not placed into effect. The IRS postponed this reporting requirement for tax year 2024 - see details above.
Annual Tax Changes
The following are some of the adjustments or changes that the IRS makes every year to keep up with inflation:
Keep up with other tax news as well as tax rumors that may become law. This page will be updated with laws only as they apply to respective tax years.
What Tax Changes Occurred for 2022?
Our 2022 tax calculators incorporate all the changes shown below.
The Child Tax Credit for 2022 is worth up to $2,000 per child. There is an earned income requirement, and it can be fully refundable up to $1,500. As a result, many taxpayers will face lower refunds for tax year 2022 compared to 2021 when it was fully refundable and had no income requirement.
Estimate and calculate your Child Tax Credit or read this detailed
IRS publication on the CTC.
For Tax Year 2022, no Recovery Rebate Credits are available compared to Tax Years 2020 and 2021.
Stimulus 1 and 2, or associated recovery credit rebates, can only be claimed by filing a 2021 tax return or amendment. For
Stimulus 3 and the Recovery Rebate Credit, a 2021 Return or amendment has to be filed. A
stimulus four payment package was never signed or issued.
The Earned Income Tax Credit was made easier to claim in 2021 for single filers. However, for 2022 and all other tax years, it is reverted back to regular qualifications.
See if you are eligible to claim the EITC.
In 2022, the IRS was putting in more effort to track gains from cryptocurrency sales or trades. Though this must be reported on a tax return every year, the IRS is now making it clearer for taxpayers to know how and when to report a gain or loss from virtual currencies they may have sold or exchanged.
For 2022, the additional or "above-the-line charitable deduction" worth up to $300 for single filers and $600 for married joint filers is no longer available. The
itemized deduction for charitable donations remains for 2022.
For 2022, the income reporting requirements for Form 1099-K did not change for 2022 as initially proposed by the IRS. This change would have drastically increased the number of tax forms issued to the
gig economy and
independent contractors.
Annual Tax Changes
The following are some of the adjustments or changes that the IRS makes every year to keep up with inflation:
The IRS has not processed all of the 2020 and 2021 tax returns they received. This might create
AGI verification issues for taxpayers and their 2022 tax returns. The National Taxpayer Advocate issued a warning to lawmakers in their annual report to Congress that the backlog creates “challenges and delays for the 2023 tax filing season for taxpayers.” See
statistical IRS processing data on unprocessed tax returns.
Start your return on eFile so you know that your return is 100% accurate based on the latest tax data.
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