Navigate the 2024 Tax Season Like a Pro: Your Complete Guide to This Year’s IRS Form Changes

As the 2025 tax filing season progresses, taxpayers across Travis County and beyond are discovering that preparing their 2024 tax returns involves more complexity than previous years. The Internal Revenue Service has introduced significant changes that may affect their 2024 tax returns, making professional guidance more valuable than ever.

Major Form Changes Affecting Your 2024 Tax Return

The most significant change for 2024 involves the reporting threshold for third-party payment platforms. Third-party settlement organizations (TPSOs), also known as payment apps and online marketplaces, are now required to report transactions when the amount of the total payments for those transactions in 2024 was more than $5,000. This represents a substantial shift from previous years and affects millions of taxpayers who use platforms like Venmo, PayPal, or sell through online marketplaces.

Taxpayers who received more than $5,000 in payments for goods and services through an online marketplace or payment app in 2024 should expect to receive a Form 1099-K in January 2025. Understanding how to properly report this income is crucial for accurate tax filing.

Updated Tax Credits and Deductions

Several tax credits have seen adjustments for the 2024 tax year. To claim the Earned Income Tax Credit (EITC) without a qualifying child in 2024, taxpayers must be at least age 25 but under age 65 at the end of 2024. If a taxpayer is married filing a joint return, one spouse must be at least age 25 but under age 65 at the end of 2024.

The Adoption Credit has also been updated. The Adoption Credit and the exclusion for employer-provided adoption benefits are both $16,810 per eligible child in 2024. The amount begins to phase out if taxpayers have a modified AGI in excess of $252,150 and is completely phased out if their modified AGI is $292,150 or more.

Digital Asset Reporting Requirements

Digital asset reporting continues to be a critical requirement for 2024 tax returns. Taxpayers must report all digital asset-related income when they file their 2024 federal income tax return, and will be asked to answer “Yes” or “No” to whether they sell, exchange or otherwise dispose of a digital asset. This includes cryptocurrencies, NFTs, and other digital assets that have become increasingly common in investment portfolios.

Why Professional Tax Preparation Matters More Than Ever

With these complex changes, many Travis County residents are turning to professional services for assistance. For businesses and individuals in the West Oak Hill area and surrounding Travis County communities, working with experienced tax preparation services west oak hill providers can ensure compliance with all new requirements while maximizing legitimate deductions.

Bokapsys, a trusted provider of financial services in Travis County, understands the unique challenges facing local taxpayers. Bokapsys offers expert bookkeeping in Travis County, TX, empowering local businesses with accurate financial oversight and support. Their comprehensive approach extends beyond basic bookkeeping to include tax preparation services that address the complexities of modern tax law.

Preparing for Success: Essential Steps

To navigate the 2024 tax season successfully, taxpayers should focus on proper documentation and record-keeping. Taxpayers should establish an effective record-keeping system, either electronic or paper, to organize all important documents in one place. This includes year-end income forms such as Forms W-2 from employers, Forms 1099 from banks or other payers, Forms 1099-K from third-party payment networks, and comprehensive records of all digital asset transactions.

The importance of maintaining organized financial records throughout the year cannot be overstated. Proper bookkeeping throughout the year makes tax preparation significantly simpler and more cost-effective. BoKapsys organizes your financial records using tax-friendly categories and tracks deductible expenses as they occur.

Electronic Filing and Direct Deposit Benefits

The IRS continues to encourage electronic filing for faster processing and refunds. Filing electronically and selecting direct deposit remains the fastest and safest way for taxpayers to receive their 2024 tax refunds. Electronic filing also reduces errors through automatic calculations and built-in error checking.

Looking Ahead: Tax Planning for Future Years

While focusing on 2024 tax compliance is essential, forward-thinking taxpayers are already considering how these changes will affect future tax years. Taxpayers with non-wage income—such as unemployment benefits, self-employment income, annuity payments or earnings from digital assets—may need to make estimated or additional tax payments. The Tax Withholding Estimator on IRS.gov can help wage earners determine if they need to make an additional payment to avoid an unexpected tax bill.

Professional tax preparation services can provide valuable guidance not just for current-year compliance, but also for strategic tax planning. Tax consulting and planning help optimize your tax strategy, ensuring that you’re positioned advantageously for future tax years while remaining compliant with current requirements.

Conclusion

The 2024 tax season brings significant changes that require careful attention and often professional expertise. From new Form 1099-K reporting thresholds to updated tax credits and ongoing digital asset requirements, taxpayers face a more complex landscape than in previous years. By understanding these changes, maintaining proper records, and working with qualified professionals when needed, Travis County residents can successfully navigate this tax season while positioning themselves for future success.

Whether you’re dealing with business income, digital assets, or complex deduction scenarios, the key to success lies in preparation, accurate record-keeping, and professional guidance when the complexity exceeds your comfort level. The investment in proper tax preparation often pays for itself through maximized deductions, avoided penalties, and the peace of mind that comes with knowing your return is accurate and compliant.