As taxpayers prepare to file their 2024 tax returns, the IRS has highlighted several significant changes that may impact filers this season. The maximum Additional Child Tax Credit (ACTC) has been increased to $1,700 per qualifying child, up from $1,600 in 2023. Additionally, standard deduction amounts have been raised for all filers, with specific amounts based on filing status and other criteria. Changes to the Earned Income Tax Credit, Adoption Credit, Clean Vehicle Credit, and Previously Owned Cleaned Vehicle Credit have also been outlined in the IRS’s annual Tax Time Guide. Taxpayers filing without a qualifying child for the Earned Income Tax Credit must be between 25 and 65 years old by the end of 2024. For those who adopted an eligible child in 2024, the Adoption Credit has been increased to $16,810 per child. The Clean Vehicle Credit and Previously Owned Cleaned Vehicle Credit provide incentives for purchasing qualifying electric or fuel cell vehicles. Taxpayers can find more information on these credits on Form 8936. It is important for taxpayers to be aware of these changes and ensure they are properly prepared for the upcoming tax season.
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