IRS Form 1099-K threshold is $5,000 for calendar year 2024
Third party settlement organizations (TPSOs), also known as payment apps and online marketplaces will be required to report transactions when the amount of total payments for those transactions is more than $5,000 in 2024; more than $2,500 in 2025; and more than $600 in calendar year 2026 and after.
Notice 2024-85 announces for calendar year 2024, that the IRS will not assert penalties under section 6651 or 6656 for a TPSO’s failure to withhold and pay backup withholding tax during the calendar year. For calendar year 2025 and after, the IRS will assert penalties under section 6651 or 6656 for a TPSO’s failure to withhold and pay backup withholding tax.
Energy efficient home improvement
The energy efficient home improvement credit includes property placed in service after Dec. 31, 2022, and before Jan. 1, 2033 (§25C). The credit amount is 30% of the sum of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during the year and the amount of the residential energy property expenditures paid or incurred by the taxpayer during that year. The maximum annual limit is $1,200 for certain property in the aggregate. In addition, there are separate annual limits of $600 for qualified energy property, $600 for windows and skylights, $250 for each exterior door ($500 in total for all exterior doors) and $150 for home energy audits. A $2,000 annual limit applies in the aggregate to amounts paid for specified heat pumps, heat pump water heaters, and biomass stoves and boilers. The energy efficient home improvement credit is claimed on Form 5695, Residential Energy Credits, Part II. There’s no lifetime dollar limit for the credit, so a taxpayer can claim the maximum amount each year until the credit expires in 2033.
Affordable care subsidies
The premium tax credit (PTC) is available to individuals whose household income is between 100% and 400% of the federal poverty line. However, for 2021-2025, the credit may be allowed when household income exceeds 400% of the federal poverty line. Also, health care costs are limited to 8.5% of family household income for Marketplace-purchased health coverage only.
Paycheck checkup
It’s always a good idea to periodically check how much federal income tax you’re having withheld from each paycheck. This is especially important if your filing status changes because of marriage, divorce or the birth of a child; you or your spouse start or stop a second job; you have taxable income with no withholding (such as retirement income, unemployment compensation, capital gains or self-employment income). We encourage you to use the IRS’s Tax Withholding Estimator to perform a “paycheck checkup” to ensure you have the right amount of tax withheld from your paycheck. The online tool is available at https://apps.irs.gov/app/tax-withholding-estimator.