INDIANAPOLIS— Tax season is officially underway, and with it comes a host of changes, challenges, and opportunities for individuals and business owners.
WRTV learned what Indiana taxpayers need to know this year to file with confidence and avoid common pitfalls according to CPA's in our state and the IRS.
We talked to Diana Ingemanson, a CPA with White Wolf Accounting in Indianapolis and she emphasized several important updates for taxpayers this year.
"Income thresholds for certain credits and deductions have shifted, so it’s important to double-check your eligibility," said Ingemanson. "Additionally, contribution limits for retirement accounts have been adjusted, providing opportunities for greater tax savings."
She says one of the most significant changes is the new IRS reporting requirements for third-party payment platforms like Venmo and PayPal, which are now issuing 1099-K forms for transactions exceeding $5,000 from a single payer.
“These updates may feel overwhelming, but staying organized and working with a licensed professional can save you time, stress, and potentially money,” Ingemanson said. "Working with a tax professional can be especially valuable for those with complex financial situations."
She says while individuals with straightforward returns, such as W-2s and simple 1099s, can often file on their own, she pointed out that business owners and those with more complicated filings almost always benefit from professional assistance.
For those with more straightforward tax needs, the IRS has expanded its free online filing platform for eligible taxpayers.
Ingemanson and the IRS say there is a growing prevalence of tax scams, which become more sophisticated each year.
"The IRS will never call, email, or show up at your house," said Ingemanson. "All legitimate correspondence from the IRS is sent via letters and taxpayers should be cautious of any phone calls or emails claiming otherwise."
Another common issue is the rise of “ghost preparers,” who promise huge refunds but refuse to sign tax returns or offer audit protection. She emphasized the importance of verifying a preparer’s credentials through the IRS or state licensing boards to avoid potential problems.
“Proactive planning is everything so don't wait until the last minute," said Ingemanson. "A good tax professional can help you navigate the changes, maximize your deductions, and avoid costly mistakes.”
