Taxes are due on Tuesday April 15, 2025 this year, but preparing to file taxes can prove to be extremely complicated for the average taxpayer. Tenere Robertson, owner of T. Robertson & Associates, LLC provides personal and business tax preparation; accounting and payroll services; tax planning; and business formation services. The woman-owned business based in Towson, Maryland includes a firm of three women who serve clients in Maryland, Virginia and the DC Area. T. Robertson & Associates, LLC also assists several hundred clients and nonprofits in all 50 states. Robertson answers questions about filing 2024 taxes and commonly missed or unknown tax information facts.
Photo credit: Samuel Delay Jr.
Q: Who must file a tax return with the IRS?
A: For most taxpayers, if you had income in 2024 and made more than $14,600, which is the standard deduction for single filer, then you are required to file a tax return in 2025. This amount does fluctuate based upon your age and filing status. For filers who qualify as head of household, that amount increases to $21,900, and if you are married, filing jointly that amount for 2025 is $29,200. However, if you are married filing separately, that filing threshold decreases to just $5. I typically recommend to my married clients who resided together that we prepare their taxes both ways (married filing jointly and married filing separately) to see which way is more advantageous. All taxpayers who are aged 65 or older get an additional $1,950 added to each of the above filing status.
Q: What are examples of commonly missed or unknown points of interest to most taxpayers?
A: 1. If you live in one state and earned income in another state, you may be taxed in both states. Some states are reciprocal states such as Maryland and Virginia, so if you work and live in one or the other, you should file the state exemption form so that no taxes are withheld other than for your home state. However, if the other state does not have a reciprocal agreement with your state, then you will need to file a nonresident return for that state and pay any tax liability due.
2. If you work from home, you may qualify as a statutory employee. To qualify as a statutory employee, the box on your W2 in box 13 should be marked and your income is now reported on Schedule C, not the 1040. This will allow you to take deductions such as the home office deduction and any other business expenses you may have although you are a W2 employee.
3. For 2024, if you were a sole proprietor/single member LLC who hired your children, you could pay them up to $14,599 (up from $13,849 for 2023). The amount is tax deductible for you and tax free to them, as it is less than the standard deduction filing requirement of $14,600 for single filers. This amount increases each year to match the standard deduction for single filers. Because the child now has earned income, you can contribute to a children’s Roth IRA for them as they would not benefit from a tax break for a traditional IRA, due to them not being required to file a tax return.
4. If you get married or divorced in 2024, whatever you are on the last day of the year is what you are considered to be for the entire year. Not new, but most people are unaware of this rule.
5. If you file a joint return and your spouse has previous tax obligations to the federal or state or may owe child support, part or all your refund may be used to pay the past-due amount. However, you can file the injured spouse form 8379 and the IRS will figure out what portion of the refund should be allocated to you based up your W2s, etc. and may refund you your portion of the refund and keep theirs.
6. If you purchase a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) between 2023 and 2032 you may qualify for a clean vehicle tax credit up to $7,500. To qualify for the credit, you must buy it for your own use, not for resale and it must be used primarily in the United States (within the 50 states) and you must have modified adjusted gross income of no more than $300,000 if you’re married filing jointly. For those filing as head of household, the modified adjusted gross income cannot exceed $225,000 and $150,000 of modified adjusted gross income for all other filers. This credit is available to both individuals and businesses, and you have the option of using your modified adjusted income from the current year or the year before purchases whichever is less and will help you qualify for the credit.
Taxes are not one size fits all, so what works for your coworker, or your neighbors will not work for you, which is why it is always best to consult with a tax advisor to discuss your unique tax situation. For every tax law there are several different outcomes based upon the filing status, income, and age of the taxpayer. This is why proper tax planning is essential if you really want to limit your tax liability, but you can’t effectively do that if you only meet/speak with your accountant/tax advisor once a year. It is recommended that you meet with your accountant/tax advisor quarterly so that together you can come up with a plan for your unique tax situation as life changes happen.
Visit https://www.facebook.com/1829TRA to learn more about T. Robertson & Associates.Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as professional tax advice. Every individual’s tax situation is unique, and the content presented may not apply to your specific circumstances. We recommend consulting with a qualified tax professional or financial advisor before making any decisions based on the information provided. The author and publisher are not responsible for any errors, omissions, or actions taken based on the information in this article.
