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2024 Tax Season is coming to town!!

As you are in the midst of what we hope is an enjoyable holiday season, we want to send a few reminders and updates on the upcoming 2024 tax season
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Key due dates for the upcoming tax season


Due dates to file on time

(or to file an extension)

March 17, 2025

  • S-corps (Form 1120S)
  • Partnerships (Form 1065)


April 15, 2025

  • Individual Returns (Form 1040)
  • C-corps (Form 1120) calendar year filers
  • Trusts (Form 1041)


Due dates if extension filed

Sep 15, 2025

  • S-corps (Form 1120S)
  • Partnerships (Form 1065)


October 15, 2025

  • Individual Returns (Form 1040)
  • C-corps (Form 1120) calendar year filers
  • Trusts (Form 1041)


In order to guarantee we can meet any of these deadlines, please have all supporting documentation to us at least 4 weeks prior to the due dates noted.


A REMINDER ON EXTENSIONS

An extension only extends the time to file your official tax return. An extension does NOT extend your time to pay the expected taxes owed. Failure to do so will subject you to additional penalties and interest.


Quarterly Estimated Payment Dates

For those making quarterly estimated payments (toward 2025 taxes), here are the due dates


  • Q1 - due April 15, 2025
  • Q2 - due June 16, 2025
  • Q3 - due September 15, 2025
  • Q4 - due January 15, 2026
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For all overachievers...


For those wanting to file as early as possible, here are the current dates on when e-files will be accepted


IRS - January 29th, 2025

CO - February 1st, 2025


These dates may change - for example, CO had issues last year and had to delay e-file acceptance until mid February.


Note - one advantage of filing early is that it helps avoid potential tax fraud. If you file early, any subsequent attempt to file a fraudulent return with your social security number would be rejected.
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Changes for 2024 and (potentially) 2025


2024

Although there were no major tax changes enacted in 2024, we want to highlight some new items that come into effect this year


1099K Forms (credit cards and payment apps)

  • For 2024, you may receive 1099K's if you received more than $5,000 during the year from credit card transactions or payment apps like PayPal, Zelle, Venmo, etc.
  • 1099K's should only be issued to you if you got paid for goods or services.
  • If you receive payment for persoanl items (like sharing the cost of meals, etc.), those are not reportable/taxable income events. Let us know if you receive a 1099K in error and we can adjust on the tax return.
  • Click the link below for more information on future changes in the 1099K limits.


1099DA Forms (digital assets)

  • This is a new form that will be required in 2026 (for 2025 digital asset transactions). However, some firms are planning to start issuing these in 2025 (for 2024 transactions). If you receive a 1099DA, please share a copy with us.


CO Business meal deduction addback

  • Starting in 2024, the business meal deduction taken on the federal tax return must be added back to CO taxable income.


CO Income tax rate

  • As part of TABOR (see below), the income tax rate for 2024 is temporarily lowered from 4.4% to 4.25%
Form 1099K Guidelines

2025

We expect 2025 will see some major tax reform legislation enacted. Although it looks like immigration and border security will be the first priority under the new Trump Administration, tax reform is expected to be the next major legislative priority addressed. Congress must address the sunset/extension of TCJA, potential tax reform items/tariff increases proposed by Trump and overall budget reconciliation.


It would be premature to predict what will get approved but the attached summary shows the potential budget impact of some of the major items under discussion as part of tax reform.


Although our focus in the coming months will be on the 2024 tax returns, we will keep you abreast of any major developments from tax reform legislation as they become available.
Potential 2025 Tax Reform Items
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2024 Return Process Logistics


US Mail System

As a reminder, we suggest you DO NOT use the US postal system for any tax related documents due to the sensitive nature of those documents as well as increased instances of mail theft, loss or delay.


Portal Use

Although not mandatory, our preferred method of sharing information is our secure client portal. Other than exchanging data in person, the portal is the most secure, convenient method and highly recommended.


If a taxpayer chooses not to use the portal, the options (in descending order) are

  1. Authorize us to use e-mail (understanding this is not as secure as the portal);
  2. Pick-up/drop off data in person at our office;
  3. Authorize us to mail data to you.


Documents provided to us

If providing data to us in person or via US mail, DO NOT GIVE US ORIGINAL DOCUMENTS. Please keep all original documents and only submit copies to us (or electronic versions).
TABOR - Taxpayer Bill of Rights write on a paperwork isolated on Wooden Table. Business or Financial Concept

TABOR Update


As a reminder, TABOR (Taxpayer Bill of Rights) for CO requires any excess revenue collected to be returned to CO residents. For 2024 (to be refunded in 2025), TABOR will be administered as follows


Tax Rate Reduction

  • All taxpayers who file a 2024 CO income tax return will receive a temporary tax rate reduction from 4.4% to 4.25%

Sales Tax Refund

  • All taxpayers who file a 2024 CO income tax return will get a refund based upon filing status and income level. Follow the link below to see the income and refund levels.
  • Note - this refund will NOT be a separate check mailed. It will be built into the 2024 return filed in CO and either increase the refund you receive or reduce the amount owed.
TABOR REFUND
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While we take time off this week, we want to take a moment to wish each of you and your loved ones a very blessed holiday season filled with light and joy and a happy new year!

Balcerzak Financial Services, LLC | 1385 S Colorado Blvd. Suite 700 | Denver, CO 80222 US

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