Important Updates for the 2024 tax year
At Lancaster Consulting, we keep a close watch on federal tax updates so you don’t have to. Here are five key changes that could affect your 2024 return (filed in 2025):
Selling on Digital Platforms
If you sell items through Venmo, PayPal, Etsy, Facebook Marketplace, or similar services, expect Form 1099-K if your gross payments exceed $5,000 in 2024 (a temporary increase from the original $600 threshold). Track sales now to prevent year-end surprises.
ACA Healthcare & Premium Tax Credits
Enhanced Premium Tax Credits remain available through 2025, even for households above 400 percent of the federal poverty level—helping lower monthly Marketplace premiums.
Emergency Retirement Withdrawals
Savers may withdraw up to $1,000 from retirement plans without penalty for qualified emergencies. Extra relief is available for domestic-abuse victims and those in federally declared disaster areas.
Inherited Retirement Accounts
Non-eligible beneficiaries must follow new timing rules. If the original owner started required minimum distributions (RMDs), you must continue them for nine years beginning in 2025. If RMDs had not started, you can skip withdrawals for nine years but must empty the account by year ten. Proper timing can save taxes—consult a professional.
Cryptocurrency Reporting
Beginning in 2025, exchanges must issue Form 1099-DA for all digital-asset sales. Organize transaction records now to ease next year’s filing.
Useful Links
Staying ahead of new rules can feel daunting, but you don’t have to do it alone. Have questions? Our team would love to help. Schedule a free consultation today by calling 707-731-0257 or emailing info@lancaster-consulting.com.