LAS VEGAS (KTNV) — As the April 15 tax deadline quickly approaches, millions of Americans are still scrambling to file their 2024 tax returns.
According to the IRS, nearly 18 million taxpayers wait until the final week to submit their yearly returns. If you’re among them, financial experts say e-filing is the fastest and safest way to submit your taxes while minimizing costly errors.
Key Tax Changes for 2024
Local financial professional Brad Zucker from SMA Wealth Management highlights a few major tax changes that filers should be aware of this year.
WATCH | Shakeria Hawkins previously spoke to Zucker for last-minute strategies to lower your 2024 tax bill.
One of the biggest adjustments involves third-party payment platforms like PayPal and Venmo. In 2024, anyone receiving $5,000 or more in income through these platforms must report it as taxable income. That threshold will drop to $2,500 in 2025 and just $600 in 2026, meaning more individuals will receive 1099 forms for smaller amounts of income.
Will Refunds Be Larger This Year?
Many taxpayers wonder if they’ll see a bigger refund this year due to changes in taxable income. According to Zucker, the average tax refund currently sits at around $3,500. However, maximizing deductions is key to ensuring you get the largest refund possible.
"Deductions lower your taxable income, which in turn increases the amount of money you get back or reduces what you owe," Zucker explains.
How to Get the Biggest Refund
For those looking to maximize their returns, Zucker advises e-filing over paper filing.
"E-filing is much faster and helps reduce errors," he says. "Once the IRS receives your return electronically, they can begin processing it right away. Plus, choosing direct deposit ensures you’ll receive your refund quicker."
Standard Deductions and Inflation-Adjusted Tax Brackets
Taxpayers will also benefit from inflation-adjusted tax brackets and higher standard deductions in 2024.
The standard deduction—the portion of income that is not subject to tax—has increased to $14,600 for single filers and $29,200 for married couples filing jointly.
"This is important because about 90% of filers take the standard deduction instead of itemizing," Zucker notes. "It’s a simple way to reduce taxable income and potentially increase your refund."
Still Have Tax Questions?
For those who need more guidance, stay tuned for Part Two of our tax tips series. If you have specific tax questions, you can email them to Shakeria.Hawkins@KTNV.com, and we’ll work to get answers in our next segment.
