Taxes can affect your passport
Seriously delinquent tax debt (SDTD) could put your passport at risk (unless an exception applies). SDTD is a legally enforceable, unpaid federal tax assessment. In 2024, this debt must exceed $62,000, with a lien filed and other remedies exhausted. In 2025, the threshold will rise to $64,000. These debts include U.S. individual income taxes, trust fund recovery penalties, business taxes for which the taxpayer is personally liable and other civil penalties.
If the IRS notifies the U.S. State Dept. that you have SDTD, your passport may be denied, revoked or limited. Click here for the details, including the conditions required to reverse a certification.
Protect your identity this tax season
The IRS's IP PIN program, which is intended to help prevent tax identity theft, is being put to new use this tax season. In the past, the IRS rejected e-filed returns that claimed dependents already claimed on another return. The rejected returns were required to be refiled on paper. But now in 2025, taxpayers can e-file with "duplicate dependents" so long as they also provide a valid IP PIN.
You can obtain an IP PIN here. Assuming other issues that might trigger a rejection don't exist, the IRS will accept a refiled return with an IP PIN. This change is expected to benefit filers claiming tax credits such as the Child Tax Credit.
Get a jump on your 2024 tax return
If you'd like to get an early start on your 2024 federal tax return, here's how. You can create or access an IRS Online Account (click here) to review your historical tax records, request a personal identification number and view any new tax information. Contact us for your tax preparation appointment at your convenience. Then start gathering tax records, including relevant receipts and invoices. You'll want to give these records to us when we prepare your return and we'll use them to claim deductions and credits.
As a new year of earnings begins, visit the IRS Tax Withholding Estimator (click here) to help ensure your employer is withholding the appropriate amount. You may need to submit an updated Form W-4. Contact us with any questions.
Helping someone with tuition?
It's a new year, and for many, that means the start of another school year, complete with tuition bills. Consider the tax implications if you're considering helping a grandchild or other student with their college expenses. If the amount you give exceeds the annual gift tax exclusion, you might owe gift tax on the excess. In 2025, this exclusion is $19,000 per recipient or $38,000 for married donors who split gifts (up from $18,000 and $36,000, respectively, in 2024).
To avoid tax implications, you can pay tuition directly to the school, which qualifies for an unlimited gift tax exclusion. This exclusion applies only to tuition, not to room, board, books or supplies.
Beware bad tax advice on social media
Despite IRS warnings, many taxpayers continue to be duped by bad online tax advice. The tax agency and its Security Summit partners are renewing alerts about false social media claims "that promise to magically enrich taxpayers." In particular, taxpayers are warned about claiming credits, including a nonexistent "Self Employment Tax Credit" and the Fuel Tax Credit that's real but only applies in rare situations. Some social media scammers try to fleece taxpayers by demanding fees for their dubious advice. But many post false information online simply for views and clicks. Taxpayers are encouraged to ignore unsolicited advice and work only with trusted tax professionals.