New tax laws 2024: IRS tax changes to maximize your tax return

Tax rules can change each year, making it tough to keep up. So, how do you find out about key new tax laws for 2024?  Easy—just turn to H&R Block. The best part is that you don’t have to dig for details.

Block has got you covered with an outline of the tax changes for 2024 that can help you get back the most money possible this tax season. Check out the need-to-know new tax laws and changes covering tax forms, tax brackets, tax rates, and more below.

New rules and tax changes for 2024

Don’t worry — you won’t need to have a tax law degree to follow what changes could affect you this tax year. Instead, check out the situations below and see what’s relevant to your life.

In 2024, did you…?

Sell items via apps or digital platforms such as Venmo, Paypal, Facebook Marketplace, Etsy, or Poshmark? You may have heard about new tax law that trigger a tax form if you receive more than $600 from any one of these types of platforms. While this rule was put on hold for 2022 and 2023 taxes, a transition threshold of $5,000 is expected to apply for 2024 taxes (2025 filing season). Learn more on our 1099-K tax form page.

Buy healthcare coverage from the ACA marketplace (heathcare.gov)?  A pandemic-related, temporary rule change in effect until the end of tax year 2024 lets more people take the Premium Tax Credit (PTC) and receive a larger tax break when they do. The law expands eligibility to those with a household income above 400% of the federal poverty level. Taxpayers who are eligible can receive larger credits due to the lower premiums that households must contribute (now between 0-8.5% of their income).

With 2025 being the last year this rule applies, taxpayers looking ahead to 2026 tax changes should note the overall Premium Tax Credit will decrease, so their share of the premium will increase.

Take a retirement plan distribution to cover personal emergency expenses? 2024 tax changes allow for retirement plan emergency withdrawals of up to $1,000 letting those with certain expenses, such as unexpected auto repairs or medical bills, take a distribution without a penalty. But take note! While these distributions are penalty free, you may still incur taxes.

It’s worth mentioning there are other new exceptions for retirement distributions. These include withdrawals due to domestic abuse cases and qualified federally declared disaster distributions. 

Inherit a retirement account? If you inherited a retirement account due to the death of a loved one, but you are not deemed an Eligible Designated Beneficiary*, you’ll want to know how the Required Minimum Distribution (RMD) rules are now different due to 2024 tax changes around the 10-year rule.

If you inherit the account from someone who:

• Was required to and already started taking RMDs, you must continue taking them annually for the first nine years after the account owner’s death and withdraw the entire balance by the end of year ten. The annual distribution rule is suspended through calendar year 2024 but you must start taking RMDs in 2025.
• Had not yet started taking RMDs, you are not required to take them for the first nine years after the account owner’s death but must withdraw the entire balance by the end of year ten.

*Eligible Designated Beneficiaries are defined as surviving spouse, minor children of the account owner, disabled or chronically ill individuals, and beneficiaries not more than 10 years younger than the deceased. These beneficiaries can take distributions over the course of their lifetime (depending on their life expectancy) or they choose the 10-year rule if the account owner passed before starting RMDs.

Transact with cryptocurrency? OK, this is really a 2025 tax law change, but we’re mentioning it here so you can start the new year with good recordkeeping habits and make tax prep that much easier. For 2025, crypto exchanges will be required to send a new form, called Form 1099-DA for any crypto or other digital asset sales you make. Find out more about crypto tax considerations. 

Wait! Weren’t there 2024 tax changes for child credits or other credits?

If you heard rumblings about changes to the Child Tax Credit (CTC) or other credits, you’re not alone. In fact, based on search data, hundreds of thousands of people were looking for information about CTC payments this year. However, it seems that many taxpayers were reacting to misinformation on social media. A similar scenario played out earlier this year when the IRS warned against misleading social media advice.

These cases underscore how important it is to rely on trusted tax experts and expert sources, like those at H&R Block, to help you understand the latest tax law changes and if they affect you.

Other IRS tax changes

The Internal Revenue Service (IRS) makes updates to common tax provisions and procedures for various reasons. One annual change is to ensure that certain parts of the tax code keep up with inflation. And, aside from new laws, there are other adjustments and tax process changes to be aware of as you consider your taxes this season.

Inflation and income tax bracket updates – Federal tax brackets and other amounts are typically adjusted each year for inflation. The tax table changes made headlines last year as the 2024 tax brackets and corresponding individual income tax rates for 2024 were substantially increased.

So, what does that mean for you? It can get complicated as there are many factors that determine how much tax you pay. But, in general, if your wages stayed the same for 2024, or if you had a pay increase that was lower than the inflation increase, you may end up paying less in tax overall. Essentially, these adjustments help prevent you from experiencing “bracket creep” as incomes shift up with overall inflation.

Related to these changes are updates to the 2024 standard deduction amounts. The IRS allows most taxpayers to lower their taxable income by taking either the standard deduction or through itemized deductions. Check out the 2024 standard deduction amounts based on your filing status.

E-file rejection changes for claiming dependents – In the past, if someone previously claimed your dependent before you electronically filed, your return would have been rejected. This could happen, for example, in extended families or divorce cases where non-married parents trade off on claiming children. It could also happen in cases of fraud and identity theft.

Starting this year, the IRS will allow you to file your individual income tax return electronically even if someone else has already claimed your dependent on a previously filed return. To do this, you’ll need to have an Identity Protection Personal Identification Number (IP PIN) for the primary taxpayer. This means you can still e-file your return without it being rejected, and any issues regarding the dependent claim will be sorted out afterward. Just keep in mind, this might delay when you receive your refund.

Getting your maximum tax refund, even if 2024 tax changes don’t apply to you

Did you answer “no” to the questions above? Fear not! You may still be able to lower your tax bill with other tax credits and tax deductions for 2024 with the expertise of H&R Block on your side.

Whether you file taxes online or with an H&R Block tax pro, we’ll help you uncover every last tax deduction and credit you deserve.