Tax Tips for Filing Your 2024 Return
Here are some tips to make your life less complicated when getting ready to file your 2024 tax return.
Pay attention to all your Form 1099-Bs. Look through your 1099-Bs immediately after receiving them, payingspecial attention to the basis code. Brokerage firms may also send you a corrected Form 1099-B in February or March, so also be on the lookout for these even if you've already filed your 2024 tax return.
Sum up your transactions. If you have a ton of transactions, try to sum them up or organize them on a spreadsheet. Having your transactions gathered in one place will make it easy to transfer all this information onto your 2024 tax return. Looking through your transactions is also a great way to reconcile your recordkeeping with your bank's or brokerage firm's list of transactions.
Be on the lookout for Form 1099-Ks. Rules about which taxpayers should receive a Form 1099-K have been different the past several years. For the 2024 tax year, you should receive a 1099-K from each electronic payment processor with whom you've received more than $2,500. There's still a chance, though, that you could still receive a 1099-K that needs reported on your tax return even if you didn't eclipse the $2,500 threshold.
You may owe taxes on interest income. If you took advantage of higher interest rate savings accounts or certificates of deposits (CDs), you could receive a Form 1099-INT for the interest income you earned. For CDs with a maturity date of longer than one year, you must report interest income for the year the interest was earned even if you didn't receive any cash.
Keep great donation records. Cash contributions under $250 require a bank record like a canceled check, credit card record or a receipt from the charity. For larger donations, a receipt from the charity must be obtained before filing your return. Donations of property should include a photo, a receipt from the charity and a detailed listing of the items donated that are in good or better condition.
Review your child’s income. Your child may be required to file a 2024 income tax return. A 2024 return is generally required if your child has earned more than $14,600, or has investment income such as dividends, interest, or capital gains that total more than $1,300.
Calculate your estimated tax if you need to extend. If you file an extension, you'll still need to do a quick calculation to estimate your 2024 tax liability. If you still owe Uncle Sam any money, you'll need to write a check by April 15. Remember, filing an extension gives you additional time to FILE your tax return, but not to PAY the taxes you owe.