Here’s the practical, plain-English rundown of changes that affect your 2024 individual return — including bigger standard deductions, new 1099-K rules, where to report digital-asset income, penalty exceptions, disaster relief payments, clean-vehicle credit reporting, and more.
Standard deduction amounts (2024)
| Filing status | 2024 standard deduction |
|---|---|
| Single or Married filing separately | $14,600 |
| Married filing jointly or Qualifying surviving spouse | $29,200 |
| Head of household | $21,900 |
Age 65+/blind add-on amounts still apply; see the 1040/1040-SR instructions for your exact totals.
Filing status: resident election for a nonresident or dual-status spouse
If you and your spouse elect to treat a nonresident alien or dual-status alien spouse as a U.S. resident for 2024 (or a prior-year election remains in effect), check the new box in the Filing Status area and enter the spouse’s name there. See “Nonresident aliens and dual-status aliens” in the instructions before you elect.
Form 1099-K: thresholds & reporting changes
Thresholds for receiving 1099-K
- 2024 You should get a 1099-K if total business-transactions volume is over $5,000.
- 2025 Threshold lowers to over $2,500.
- 2026+ Threshold lowers to over $600.
Wrong or personal 1099-K amounts
If your 1099-K shows amounts that were included in error or reflect personal items sold at a loss, enter those amounts in the entry space at the top of Schedule 1 (see Schedule 1 instructions).
Digital assets: report ordinary-income amounts on Schedule 1
If you received digital assets as ordinary income and that income isn’t reported elsewhere on the return, report it on Schedule 1, line 8v. (Don’t forget to answer the yes/no digital-assets question on page 1 of Form 1040/1040-SR.)
New exceptions to the 10% early-distribution tax (starting 2024)
Distributions from retirement plans may avoid the additional 10% tax if used for certain emergency personal expenses or if you’re a victim of domestic violence. See Form 5329, Pub. 575, and Pub. 590-B for qualifications and limits.
Disaster relief payments that may be nontaxable
- East Palestine, Ohio relief payments — may be nontaxable.
- Qualified wildfire relief payments — may be nontaxable.
See IRS.gov/DisasterRelief and Pub. 547 for what qualifies and any documentation you should keep.
RMD update: surviving spouse may elect to be treated as the employee
Beginning in 2024, a surviving spouse who is the designated beneficiary of a plan participant or IRA owner can elect to be treated as the employee for RMD purposes. See Pub. 575 and Pub. 590-B for details and planning implications.
Form & program updates you’ll notice
Form 5405 (first-time homebuyer credit)
Last year is 2024. The 15-year repayment period for homes purchased in 2008 ends with your 2024 return.
Medicaid waiver payments on your W-2
Nontaxable Medicaid waiver payments should now appear on Form W-2, box 12, code II.
Form 8888 (savings bonds discontinued)
You can no longer buy paper bonds or direct your refund to TreasuryDirect to buy savings bonds via Form 8888. The form now only splits refunds across accounts or between deposit and paper check.
Where things land on Schedules 2 & 3 — and clean-vehicle rules
Schedule 2 updates
- If you have an excessive payment, increase in tax, or recapture related to certain investment credits (Form 4255), report on the specified lines of Schedule 2 (see: lines 1d, 1e, 1f, 1y, 17a, 17z, 19).
- If you must repay a clean-vehicle credit (Form 8936 / Schedule A of Form 8936), use Schedule 2, lines 1b and 1c.
Schedule 3 updates
U.S. tax allocable to the U.S. Virgin Islands (from Form 8689) is now reported on Schedule 3, line 13z.
Clean-vehicle credit transferred to dealer
If you reduced the purchase price at the dealership by transferring the credit, you must file a return and attach Form 8936 and Schedule A (Form 8936) to reconcile your eligibility.
Direct File becomes permanent (starting with 2025 filings)
Direct File is a free, secure IRS e-filing option for eligible taxpayers in participating states. It supports certain income types, credits, and deductions and will expand over time. See DirectFile.IRS.gov and IRS.gov/DirectFile for supported states and situations for the 2024 tax year and beyond.
Quick action checklist
- Confirm your 2024 standard deduction and whether itemizing still makes sense.
- Review 1099-K forms: separate personal/loss sales and use the Schedule 1 entry space if needed.
- Report any digital-asset ordinary income on Schedule 1, line 8v and answer the digital-assets question.
- If you took retirement distributions, check if the new 10% exceptions apply.
- Received disaster relief payments? Confirm if nontaxable and keep documentation.
- Claimed or transferred a clean-vehicle credit? Attach Form 8936 + Schedule A and use Schedule 2 lines if repaying.
- Using Direct File next season? Check eligibility and your state’s participation.
