TYLER, Texas (KETK) – As new tax laws take effect in 2024, some Tyler tax experts say the change could mean more people needing help getting their taxes right. states.
Ashley Lewis has been a tax professional for over 10 years and is currently the co-founder of AshRoq Financial in Tyler.
Over the past year, she has also noticed new trends in her own financial habits.
“I have a 17-year-old child, so I always send money through Cash App, but sometimes he sends money to me,” Lewis said.
While these peer-to-peer money transfer apps make things easier, Lewis said they could be problematic for some users this tax season because of the laws the IRS is enforcing. .
“They’re significantly reducing the amount of money that’s moving around but not being tracked,” Lewis said.
Anyone who received $600 or more through Cash App in the past year and the note doesn’t include words like “refund” or “happy birthday” will count it as taxable income.
“So you say, ‘Wait a minute, it’s just my friend sending me half the rent, or my kid sending me money for his cell phone bill, or something like that. ‘And now I’m going to do that.’ It’s treated as if it were taxable income. So that’s a big deal.”
Another local tax expert, Kenesha Minnick of Liberty Tax, said users should receive a 1099K with that information in the mail around the end of January, which she believes will catch many people off guard. Told.
“They’re going to be scared. So the best thing to do is talk to a tax professional. Let them help you. Some of that money can be written off, so do whatever you need to do to help.” Let them explain,” Minick said.
Both tax experts want residents to know about two other changes for the 2024 season, including the IRS raising the standard deduction to account for inflation.
“So your money is going to go a little farther,” Lewis said.
However, the scope of taxation has also expanded. Because of this, Lewis says getting a raise doesn’t mean you’ll get more reimbursement, as some customers believe.
At the end of the day, the biggest thing Lewis and Minnick encourage is getting help.
“This year it’s a 1099K so I need some help. Don’t do it with Turbo Tax,” Minick said.
These are not the only changes this year, but they believe these are the ones that will impact local residents the most.