The IRS has introduced significant changes for the 2024 tax filing season, impacting tax brackets and offering the option for online submission of forms. Learn about these revisions and their potential impact on your tax returns.
IRS Implements Online Submission and Alters Tax Brackets for 2024 Tax Filing Season
The 2024 tax filing season has brought noteworthy modifications to IRS regulations, promising larger refunds while mandating adjustments for taxpayers. Changes initiated by the IRS include the option for online submission of various forms that were previously completed manually and mailed in. Mark Cappis, the owner of Cappis Consulting and Tax, explained that the adjustments to tax brackets and standard deductions are aimed at streamlining the tax filing process, potentially reducing the time it takes for taxpayers to file for refunds.
In light of the ongoing shortage of tax preparers, exacerbated by the COVID-19 pandemic, larger firms have been forced to release some of their employees, resulting in a reduced workforce entering the profession. These changes, however, are expected to enable taxpayers to expedite the filing process and potentially receive larger refunds or owe less in taxes in 2024. Importantly, the state of Montana has introduced its own set of changes, simplifying tax matters by consolidating tax brackets from five or six down to two, lowering tax rates, and eliminating certain deductions.
The IRS’s decision to raise tax brackets by 5.5% could mean owing less in taxes or receiving larger refunds in the 2024 tax season. Montana’s comprehensive changes reflect a broader trend of tax simplification and consolidation. With reduced deductions and simplified filing statuses, taxpayers are urged to carefully consider these alterations as they prepare their federal and state tax returns. These modifications are expected to create a significant impact on both individuals and businesses as they navigate the filing process in the upcoming tax season.
Ultimately, these changes represent a concerted effort by the IRS and the state of Montana to simplify the often intricate and time-consuming tax filing process. Taxpayers are encouraged to stay informed about these alterations and seek professional guidance to ensure compliance with the revised regulations and to maximize potential tax benefits in the 2024 tax filing season.