Four Questions You May Have This Tax Season

Tax season doesn’t have to be stressful—get ahead of the game by answering these questions to ensure a smooth filing process.

1. When will I receive my tax refund?

The IRS states that most taxpayers will receive their federal refund within 21 days of filing. Delays can occur due to errors, missing forms, or identity verification issues. If you owe taxes, payment is due by April 15, even if you file an extension.

2. Do I need to report all my digital payment transactions as taxable income?

Starting in 2025, the threshold for reporting business transactions on platforms like Venmo, PayPal, and CashApp has been lowered to $5,000. Personal transactions between family and friends are excluded. Regardless of receiving a 1099-K, all income must be reported to the IRS.

3. Can I deduct my family’s medical expenses?

If you itemize deductions, you can deduct qualified medical expenses that exceed 7.5% of your adjusted gross income. This includes insurance premiums, treatments, prescriptions, and more.

4. Do I need to make quarterly estimated tax payments?

If you expect to owe more than $1,000 in taxes, you may need to make quarterly estimated payments to avoid penalties. These are due on April 15, June 15, September 15, and January 15 of the following year.