Future developments. For the latest information about the tax law topics covered in this publication, such as legislation enacted after it was published, go to IRS.gov/Pub17.
Due date of return. File Form 1040 or 1040-SR by April 15, 2024. If you live in Maine or Massachusetts, you have until April 17, 2024, because of the Patriots’ Day and Emancipation Day holidays. See chapter 1, later.
Additional child tax credit amount increased. The maximum additional child tax credit amount has increased to $1,600 for each qualifying child. New clean vehicle credit. The credit for new qualified plug-in electric drive motor vehicles has changed. This credit is now known as the clean vehicle credit. The maximum amount of the credit and some of the requirements to claim the credit have changed. The credit is still reported on Form 8936 and Schedule 3 (Form 1040), line 6f. For more information, see Form 8936. Previously owned clean vehicle credit. This credit is available for previously owned clean vehicles acquired and placed in service after 2022. For more information, see Form 8936. Who must file. Generally, the amount of income you can receive before you must file a return has been increased. For more information, see chapter 1, later. Standard deduction amount increased. For 2023, the standard deduction amount has been increased for all filers. The amounts are: Single or Married filing separately—$13,850; Married filing jointly or Qualifying surviving spouse—$27,700; and Head of household—$20,800. See chapter 10, later. New lines on Schedule 3 (Form 1040). This year Schedule 3 (Form 1040) has new lines. Line 5a will be used to report the residential clean energy credit from Form 5695. Line 5b will be used to report the energy efficient home improvement credit from Form 5695. Line 6m will be used to report the credit for previously owned clean vehicles from Form 8936. Line 13c will be used to report the elective payment election amount from Form 3800.
Credits for qualified sick and family leave wages. The credits for qualified sick and family leave wages paid in 2023 for leave taken before April 1, 2021, and for leave taken after March 31, 2021, and before October 1, 2021, are now reported on Schedule 3, line 13z. See Schedule H (Form 1040) for more information. Alternative motor vehicle credit. The alternative motor vehicle credit has expired. Self-employed health insurance deduction. Use Form 7206 and its instructions to determine any amount of the self-employed health insurance deduction you may be able to claim and report on Schedule 1 (Form 1040), line 17. Qualified charitable distribution one-time election. Beginning in 2023, you can elect to make a one-time distribution up to $50,000 from an individual retirement account to charities through a charitable remainder unitrust, or a charitable gift annuity funded only by qualified distributions. See Pub. 590-B for more information. Increase in required minimum distribution age. If you reach age 72 in 2023, the required beginning date for your first required minimum distribution is April 1, 2025. See Pub. 590–B for more information. IRA contribution limit increased. Beginning in 2023, the IRA contribution limit is increased to $6,500 ($7,500 for individuals age 50 or older) from $6,000 ($7,000 for individuals age 50 or older). Deferred compensation contribution limit increased. If you participate in a 401(k) plan, 403(b) plan, or the federal government’s Thrift Savings Plan, the total annual amount you can contribute is increased to $22,500 ($30,000 if age 50 or older) for 2023. This also applies to most 457 plans. Insurance premiums for retired public safety officers. Eligible retired public safety officers can exclude from income up to $3,000 of distributions from their eligible retirement plan that is paid directly to them and is used to pay for health insurance premiums. Exception to the 10% additional tax for early distributions. The exception to the 10% additional tax for early distributions include the following. Distributions from a retirement plan in connection with federally declared disasters. Distribution from a retirement plan made to someone who is terminally ill. Distributions to firefighters at age 50 or with 25 years of service under the plan. See Form 5329 and Pub. 590-B for more information. Direct File. The IRS is taking steps to implement a Direct File pilot during the 2024 filing season. This pilot will give eligible taxpayers an option to prepare and electronically file their 2023 federal tax returns directly with the IRS for free. The Direct File pilot will be offered to eligible taxpayers in participating states who have relatively simple tax returns reporting only certain types of income and claiming limited credits and deductions. See IRS.gov/DirectFile for pilot information and updates. Health flexible spending arrangements (health FSAs) under cafeteria plans. For tax years beginning in 2023, the dollar limitation under section 1251(i) on voluntary employee salary reductions for contributions to health FSAs is $3,050. Temporary allowance of 100% business meal deduction has expired. Section 210 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 provided for the temporary allowance of a 100% business meal deduction for food or beverages provided by a restaurant and paid or incurred after December 31, 2020, and before January 1, 2023. Disaster tax relief. The special rules that provide for tax-favored withdrawals and repayments now apply to disasters that occur on or after January 26, 2021. See Disaster-Related Relief in Pub. 590-B for more information. Distributions to terminally ill individuals. The exception to the 10% additional tax for early distributions is expanded to apply to distributions made after December 29, 2022, to an individual who has been certified by a physician as having a terminal illness. See Pub. 590-B for more information. Certain corrective distributions not subject to 10% early distribution tax. Beginning with distributions made on December 29, 2022, and after, the 10% additional tax on early distributions will not apply to the income attributed to a corrective IRA distribution, as long as the corrective distribution is made on or before the due date (including extensions) of the income tax return. Delayed refund for returns claiming the additional child tax credit (ACTC). The IRS cannot issue refunds before mid-February 2024 for returns that properly claim ACTC. This time frame applies to the entire refund, not just the portion associated with ACTC. Standard mileage rate. The 2023 rate for business use of a vehicle is 65.5 cents a mile. The 2023 rate for use of your vehicle to do volunteer work for certain charitable organizations is 14 cents a mile. The 2023 rate for operating expenses for a car when you use it for medical reasons is 22 cents a mile. Modified adjusted gross income (AGI) limit for traditional IRA contributions. For 2023, if you are covered by a retirement plan at work, your deduction for contributions to a traditional IRA is reduced (phased out) if your modified AGI is: More than $116,000 but less than $136,000 for a married couple filing a joint return or a qualifying surviving spouse, More than $73,000 but less than $83,000 for a single individual or head of household, or Less than $10,000 for a married individual filing a separate return. If you either live with your spouse or file a joint return, and your spouse is covered by a retirement plan at work but you aren’t, your deduction is phased out if your modified AGI is more than $218,000 but less than $228,000. If your modified AGI is $228,000 or more, you can’t take a deduction for contributions to a traditional IRA. See How Much Can You Deduct in chapter 9, later. Modified AGI limit for Roth IRA contributions. For 2023, your Roth IRA contribution limit is reduced (phased out) in the following situations. Your filing status is married filing jointly or qualifying surviving spouse and your modified AGI is at least $218,000. You can’t make a Roth IRA contribution if your modified AGI is $228,000 or more. Your filing status is single, head of household, or married filing separately and you didn’t live with your spouse at any time in 2023 and your modified AGI is at least $138,000. You can’t make a Roth IRA contribution if your modified AGI is $153,000 or more. Your filing status is married filing separately, you lived with your spouse at any time during the year, and your modified AGI is more than zero. You can’t make a Roth IRA contribution if your modified AGI is $10,000 or more. See Can You Contribute to a Roth IRA in chapter 9, later.
2024 modified AGI limits. You can find information about the 2024 contribution and modified AGI limits in Pub. 590-A. Tax law changes for 2024. When you figure how much income tax you want withheld from your pay and when you figure your estimated tax, consider tax law changes effective in 2024. For more information, see Pub. 505. Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount is increased to $81,300 ($126,500 if married filing jointly or qualifying surviving spouse; $63,250 if married filing separately). The income levels at which the AMT exemption begins to phase out have increased to $578,150 ($1,156,300 if married filing jointly or qualifying surviving spouse). Reporting requirements for Form 1099-K. Form 1099-K is issued by third party settlement organizations and credit card companies to report payment transactions made to you for goods and services.You must report all income on your tax return unless excluded by law, whether you received the income electronically or not, and whether you received a Form 1099-K or not. The box 1a and other amounts reported on Form 1099-K are additional pieces of information to help determine the correct amounts to report on your return.If you received a Form 1099-K that shows payments you didn’t receive or is otherwise incorrect, contact the Form 1099-K issuer. Don’t contact the IRS; the IRS can’t correct an incorrect Form 1099-K. If you can’t get it corrected, or you sold a personal item at a loss, see the instructions for Schedule 1, lines 8z and 24z, later, for more reporting information.All IRS information about Form 1099-K is available by going to IRS.gov/1099K.
