Be Prepared for the 2025 Tax Season: Deadlines, News, and Updates
Disclaimer: This material is prepared for informational purposes only and is not tax advice. Please speak with a tax professional or view the resources linked in the article to see how this information may apply to you.
Happy New Year from all of us at Northside Tax Service! January marks the start of tax season, and we’re excited to help you with all your tax needs. Here are a few updates as we get ready:
2025 Important Dates and Deadlines
January 15, 2025 — Estimated Q4 payments for 2024 due
Late January (TBD) — IRS opens for e-filing
April 15, 2025 — Deadline to file a U.S. Individual Income Tax Return (Form 1040) for 2024
April 15, 2025 — Deadline to request an extension to file
April 15, 2025 — Estimated Q1 payment for 2025 due
April 15, 2025 — Deadline to file a 2021 tax return and claim the Recovery Rebate Credit
June 16, 2025 — Estimated Q2 payments for 2025 due
September 15, 2025 — Estimated Q3 payments for 2025 due
October 15, 2025 — Deadline to file 2024 tax return on extension
January 15, 2026 — Estimated Q4 payments for 2025 due
2025 Tax Season News and Updates
1099-K Reporting Threshold
The reporting threshold for third-party payment platforms was reduced to $5,000 in 2024, down from $20,000 in previous years. Taxpayers exceeding this threshold will receive a Form 1099-K, either by mail or electronically, at the start of 2025. This is part of a phase-in plan to lower the reporting threshold to $600.
A 1099-K will be issued for each third-party payment platform where taxpayers earned more than $5,000, including:
Point-of-sale platforms such as Square and Clover
Online payment services such as PayPal and Venmo
Online selling platforms such as eBay and Etsy
Ridesharing apps such as Uber and Lyft
Freelancing platforms such as Upwork and Fiverr
Learn more about Form 1099-K.
Automatic Payments Issued for the 2021 Recovery Rebate Credit
The IRS is issuing automatic payments to eligible taxpayers who filed their 2021 tax return but didn’t claim the 2021 Recovery Rebate Credit. This credit allows taxpayers to claim the “Stimulus Checks” issued during the Covid-19 pandemic. The maximum payment amount is $1,400 per individual but may vary depending on eligibility. Payments will be deposited into the bank account listed on the taxpayer’s 2023 tax return or mailed to the address on record.
If you have not filed your 2021 tax return and are eligible for the Recovery Rebate Credit, you must file by the April 15, 2025 deadline or you will lose the ability to claim the credit.
Learn more on the IRS website.
Northside Tax Service has moved!
We are delighted to inform you that as of May 28, 2024, Northside Tax Service has relocated to a new space! Our office is now located at 913 Squalicum Way, Suite 212, Bellingham, WA 98225. This move is a significant milestone in our journey, reflecting our ongoing commitment to providing our clients with the best possible service and support.
2024 Rates, Credits, and Deductions
Here are the 2024 rates and limits that will apply to the tax return you file in 2025.
Standard Deduction
The rates for the 2024 standard deduction based on filing status are:
Single and married filing separately: $14,600
Head of household: $21,900
Married filing jointly: $29,200
Rates will vary for those 65 years and older and those with blindness.
Learn more about standard deduction vs. itemized deductions.
Marginal Tax Rates
Marginal tax rates refer to the amount you will be taxed based on your income level. Depending on your taxable income, you may be in multiple tax brackets. Here are the marginal tax rates for 2024:
10% for incomes of $11,600 or less ($23,200 for married couples filing jointly)
12% for incomes over $11,600 ($23,200 for married couples filing jointly)
22% for incomes over $47,150 ($94,300 for married couples filing jointly)
24% for incomes over $100,525 ($201,050 for married couples filing jointly)
32% for incomes over $191,950 ($383,900 for married couples filing jointly)
35% for incomes over $243,725 ($487,450 for married couples filing jointly)
37% for incomes over $609,350 ($731,200 for married couples filing jointly)
Earned Income Tax Credit
Here are the maximum amounts to qualify for the Earned Income Tax Credit in 2024 based on filing status and number of children or relatives claimed:
| Children or Relatives Claimed | Single, Head of Household, and Widow AGI | Married Filing Jointly AGI | Max Credit Amount |
|---|---|---|---|
| Zero | $18,591 | $25,511 | $632 |
| One | $49,084 | $56,004 | $4,213 |
| Two | $55,768 | $62,688 | $6,960 |
| Three or More | $59,899 | $66,819 | $$7,830 |
Learn more about the Earned Income Tax Credit.
Retirement Savings
The 2024 contribution limit for traditional and Roth IRAs increased to $7,000, up from $6,500 in 2023. If you’re 50 or older, you can make an additional $1,000 catch-up contribution.
For individuals with a 401(k) plan, the contribution limit increased to $23,000, up from $22,500 in 2023.
Learn more about Individual Retirement Arrangements (IRAs).
Need help filing your 2024 tax return?
At Northside Tax Service, we file individual tax returns with everything from W-2 income to more complex filings for investments, self-employment, and rental properties. Our knowledgeable tax preparers stay current on the latest tax laws to help you maximize your return. Call us today at (360) 922-0235 to get started!
