Biggest tax changes for this year: What filers need to know

Here are the biggest tax changes to be aware of this year.

Transcript

00:00A couple big changes that people need to be aware of for this year are one, a lot more people are

00:05going to get what we call form 1099k. Who's going to get this? Just a couple examples is if you sell

00:12things online through an online marketplace like maybe a say like an Etsy or you provide services

00:17or sell goods but you take payment through a third-party payment platform like maybe a Venmo

00:23or a PayPal, a lot of people are going to get a K this year for the first time and why that is is

00:29because in prior years you had to have over $20,000 in gross proceeds and over 200 transactions.

00:36Well for this year for 2024 it's just $5,000. It's going to go down even more for 2025 where it's

00:43$2,500 and then for future years only $600. So that's a big one to know for this year and for

00:49the future because you may see a new tax form and you need to know how to handle it on your return.

00:54Another big one is electric vehicles and the clean vehicle credit. If you purchased

00:59a vehicle from a dealership you may have had the option to transfer that credit to the dealership

01:04at the time of purchase to help reduce your purchase price. If you did that you need to

01:10report that on your tax return. If you didn't do that and you think you purchased an eligible vehicle

01:15make sure you have that vehicle information when you go to file your tax return so you can claim

01:20that credit which can be up to $7,500 for a qualifying new vehicle.