The IRS reminds taxpayers there are things they should do before the current tax year ends on December 31.
Identity Protection Personal Identification Number (IP PIN) - Consider obtaining an IP PIN issued by the IRS to get extra protection against identity theft during the 2025 tax season and avoid refund delays when claiming the Earned Income Tax Credit and Child Tax Credit even if your dependents are victims of identity theft.
Review and Understand Form 1099-K if you receive one
Taxpayers who received more than $5,000 in payments for goods and services through an online marketplace or payment app in 2024 should expect to receive a Form 1099-K PDF in January 2025.
Money received as a gift or reimbursement of a share of a meal or rent should not be reported on a 1099-K. If it was, contact the payment platform (the issuer of your Form 1099-K) to correct the form, or let your tax preparer know.
Only business related transactions or gain from any sale of your personal assets are taxable.
Donate to Charity
Taxpayers must make any donation to a tax-exempt organization they want to deduct on their 2024 return by December 31.
IRA owners age 70½ or over have the option to transfer up to $100,000 to charity tax-free each year. These transfers, known as qualified charitable distributions or QCDs, offer eligible older Americans a great way to give to charity before the end of the year. For those who are at least 72, QCDs count toward the IRA owner's required minimum distribution for the year.
Find information about retirement plans
Maximize your contribution to your IRA accounts. The contribution limit to all of your traditional IRAs and Roth IRAs for 2024 is $7,000 ($8,000 if you're age 50 or older), or, if less, your taxable compensation for the year.
Contribute salary deferral - Taxpayers can make a salary deferral to a retirement plan. This helps maximize the tax credit available for eligible contributions. Taxpayers should make sure their total salary deferral contributions do not exceed the $23,000 limit for 2024.
Required minimum distributions (RMDs) - Individuals who reach 73 in 2024 have their first RMD due by April 1, 2025.
Consider estimated tax payments - Individuals who receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income should make quarterly estimated tax payments. The last payment for 2023 is due on Jan. 16, 2024.
Report virtual currency transactions on Form 1040 - Just like previous filing years, taxpayers must report all digital asset-related income when they file their 2024 federal income tax return. A digital asset is property that is stored electronically and can be bought, sold, owned, transferred or traded. Examples include convertible virtual currencies and cryptocurrencies, stablecoins and non-fungible tokens (NFTs).
If a taxpayer had digital asset transactions last year, they should be sure to keep records that prove their purchase, receipt, sale, exchange or any other disposition of the digital assets and that includes the fair market value, as measured in U.S. dollars of all digital assets received as income or as a payment in the ordinary course of a trade or business.
View account information online - Individuals who have not set up an Online Account yet should do so soon. People who have already set up an Online Account should make sure they can still log in successfully. Taxpayers can use Online Account to securely access the latest available information about their federal tax account.
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