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Patrick Garcia

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https://pgtaxservices.com

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2024 Tax Updates

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📢 2024 Tax Updates: What You Need to Know

As we head into the 2024 tax season, there are several key changes and deadlines you should be aware of to stay compliant and avoid surprises. Here’s a quick overview of important updates from the IRS:

🔹 Standard Deduction Increase
For 2024, the standard deduction has increased:

  • Single filers: $14,600

  • Married filing jointly: $29,200

  • Heads of household: $21,900

🔹 Contribution Limits Have Risen

  • 401(k): Up to $23,000 (plus $7,500 catch-up for 50+)

  • IRA: Up to $7,000 (plus $1,000 catch-up for 50+)

🔹 New IRS Reporting Rules for Digital Payments
Starting in 2024 (for 2023 income), third-party platforms like Venmo, PayPal, and Cash App will issue Form 1099-K for business transactions totaling over $5,000 (revised from the originally planned $600 threshold). Make sure to track any business-related payments you receive through these platforms.

🔹 Energy Tax Credits Expanded
If you’ve made energy-efficient upgrades to your home (solar panels, heat pumps, insulation, etc.), you may qualify for expanded federal tax credits under the Inflation Reduction Act.

🔹 Important Filing Deadlines

  • W-2s and 1099s due to recipients: January 31, 2025

  • Tax filing deadline: April 15, 2025

  • Extension deadline: October 15, 2025

✅ Tip: Organize your tax documents early, especially if you’ve received income from multiple sources or used digital payment apps for business.

Stay informed and plan ahead—small changes can have a big impact on your return. For more detailed guidance, consult a tax professional or visit irs.gov.

Tax professionals

Time is running out to file your 2021 taxes don’t be late!

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Taxes are due April 18th!  Skip waiting in the office or in line. Contact us today to work virtually with our office to have a tax pro do your taxes. How does it work?  Use any device such as smartphone, laptop, or desktop to work with our office. Take a pic of your documents and send them to our office using a secure link with double encryption. A tax pro will review and get your taxes done and sent back to you to approve.  Get live updates from us whenever, wherever, any time you like.

 

know upfront pricing before we start.  Contact PG Tax Services today!

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What document’s do I bring to my tax preparer?

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General Information

  • Bank account number and routing number, if you are opting for depositing your tax refund directly into your bank account.
  • Date of Birth for yourself, spouse and dependents.
  • Full Names and Social Security Numbers for yourself, your spouse, and any children / dependents that you have.
  • Payments of Estimated Federal, State, local taxes paid or paycheck withholding amounts paid over the tax year being filed.
  • Previous year’s tax returns for you and your spouse.

Income Documentation

  • W-2 forms for you and your spouse
  • SSA-1099 for Social Security benefits received
  • 1099-MISC Income: independent contractor forms
  • 1099-S form for income from sale of a property
  • 1099-C forms for cancellation of debt
  • 1099-R, Form 8606 for distributions from IRAs or retirement plans
  • 1099 – Interest and Dividend Income, Retirement, Annuities, tax refunds, Unemployment
  • 1099-G unemployment income forms, or state / local tax refunds
  • Alimony received
  • Cost Basis of Securities Sold
  • Cryptocurrency, collect a record of your every exchange and transaction.
  • Miscellaneous income: jury duty, gambling winnings, Medical Savings Account, scholarships, etc.
  • Prior year installment sale information – Forms 6252, principal and interest collected during the year, SSN and address for payer
  • Rental property income and expenses: profit/loss statement, suspended loss information

Adjustments to your income

  • Alimony paid
  • Receipts for qualified energy-efficient home improvements (solar, windows, etc.)
  • Records of IRA contributions made during the year
  • Records of Medical Savings Account (MSA) contributions
  • Self-employed health insurance payment records
  • Form 1098-E for student loan interest paid (or loan statements for student loans)
  • Form 1098-T for tuition paid (or receipts/canceled checks for tuition paid for post-high school)

Deductible Expenses

Itemized Deductions (Schedule A)

  • List of Charitable Contributions
  • Medical Expenses, Health Care Insurance, Prescriptions, Doctors, Dentists, Eyeglasses, Long Term Health Care Insurance
  • Real Estate Taxes and other taxes paid, PMI insurance, points,
  • Form 1098 – Mortgage Interest Expense

Additional Documentation

Prior-year refund applied to current year and/or any amount paid with an extension to file.

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How Much Advanced Child Tax Credit Will I Get?

Advanced Child Tax Credit Payments Information for Texas

Your total advance Child Tax Credit payment amounts will equal half of the amount of your estimated 2021 Child Tax Credit. This amount is then divided into monthly advance payments to you.

As a result:

  • For each of your qualifying children age 5 or younger, generally you will receive $300. That is determined by dividing $3,600 in half, which is $1,800. Six monthly payments of $300 will provide you with $1,800.
  • For each of your qualifying children ages 6 to 17, generally you will receive $250. That is determined by dividing $3,000 in half, which is $1,500. Six monthly payments of $250 will provide you with $1,500.
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Update Child Tax Credit Payments Direct Deposit Info

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How to Update Child Tax Credit Payments Direct Deposit Information

The Internal Revenue Service today upgraded a key online tool to enable families to quickly and easily update their bank account information so they can receive their monthly Child Tax Credit payment.

The bank account update feature was added to the Child Tax Credit Update Portal, available only on IRS.gov. Any updates made by August 2 will apply to the August 13 payment and all subsequent monthly payments for the rest of 2021.

Families will receive their July 15 payment by direct deposit in the bank account currently on file with the IRS. Those who are not enrolled for direct deposit will receive a check. The IRS encourages people without current bank account information to use the tool to update their information so they can get the payments sooner.

The IRS also urges people to be on the lookout for scams related to the Child Tax Credit. People who need to update their bank account information should go directly to the IRS.gov site and not click on links received by email, text or phone.

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2021 Advance Child Tax Credit Payment Information

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Earlier this month, the IRS began sending letters to more than 36 million families who may qualify for monthly Child Tax Credit advance payments. The IRS determines eligibility based on information provided on the 2020 federal tax return (or information from the 2019 tax return if a 2020 tax return has not been filed when the payments begin). Payments are scheduled to be begin on July 15, 2021. Subsequent payments are scheduled for August 13, September 15, October 15, November 15 and December 15.

The advance CTC payments will equal half of the total estimated CTC that the taxpayer will claim on their 2021 tax return. The payment amount is determined for each qualifying child as $300 per month for children under age 6 and $250 per month for children ages 6 to 17. Because the payments are advance payments of the taxpayer’s CTC for 2021, the amounts received will be reported on the 2021 federal tax return and will reduce the remainder of CTC the taxpayer will receive when they file their return.

Several tools will be available on IRS.gov for taxpayers to determine their eligibility, track the status of payments, and to opt-out of the advance payments. The IRS has already launched a Tool for Non-Filers to sign up to receive advance CTC payments if eligible, and a Child Tax Credit Update Portal to help taxpayers manage Child Tax Credit payments. An Eligibility Assistant has also been added to the IRS website to help taxpayers determine whether or not they are eligible for the advance payments.