Here are some important changes to be aware of for the 2025 tax filing season:
Form 4136 Worksheet Requirement
Starting in 2024, taxpayers claiming the fuel tax credit using Form 4136 must complete and attach a new worksheet titled “Statement Supporting Fuel Tax Credit Computation” to their tax return. This worksheet ensures taxpayers understand the requirements for claiming the credit and provides the IRS with information about the business and the fuel’s usage. Failing to include this worksheet may delay return processing and result in the IRS requesting the completed worksheet.
For more details, refer to page 9 of the Form 4136 instructions.
Form 5695 (Residential Energy Credits) – Special Rule for Claiming Credit
The 2024 Form 5695 introduces a checkbox for taxpayers who qualify for a residential energy credit and share occupancy of the home with someone other than their spouse. In such cases, a special rule allows both individuals to claim the credit if they jointly paid for the qualifying property. For more information, see the instructions for line 7c of Form 5695.
Change in Reporting Threshold for Form 1099-K for Third-Party Networks
For 2024, individuals receiving $5,000 or more in income from goods and services through third-party payment networks (e.g., Venmo, Cash App, PayPal, Zelle) will receive a Form 1099-K (Payment Card and Third-Party Network Transactions) in January 2025. If a taxpayer receives a Form 1099-K for the sale of a personal item sold at a loss or receives one in error, the total amount from that 1099-K will now be reported on a new line at the top of Form 1040, Schedule 1.
Staying informed about these changes can help ensure accurate and timely filing of your tax return.
