Frequently Asked Questions

Federal Refund Status: If you need to check the status of your refund, you can use the IRS online application by clicking on the following link: "Where's My Refund?" You can also check the status of your federal refund by phone by calling the IRS Refund Hotline at 1-800-829-1954.

Your personal tax return, also known as a 1040, is due on April 15th of every year. However, there is an exception if the 15th falls on a weekend then the due date is on the next business day. If an extension is filed by the due date, it gives the taxpayer a 6 month extension to file the tax return.

The short answer is yes. For SMLLC or Sole Proprietors, you may not be required to file a Schedule C, but if your business was active and you incurred expenses, you can claim those expenses. Some states will require a filing for the LLC regardless of whether there was activity. It is important to note that as long as the business was active and operational, even if you made no income, you can claim those expenses. For C-Corps, S-Corps, and 1065, it is always mandatory to file, even if there was no activity.

The vast majority of income types can be taxed, such as wages, salaries, tips, commissions, bonuses, vacation pay, sick pay, and severance pay. Winnings from gambling are also taxable. Adjusted gross income (AGI) is your total gross income and income from other sources. Taxable income is adjusted gross income minus your deductions.

Tax brackets are often confused with tax rates, but the terms aren't interchangeable. Each bracket holds an amount of income that applies to a tax rate.

Tax exemptions lower taxable income on your return. There are several types of exemptions you might be able to claim:

• Personal exemptions: Note that you can't claim this if you are a dependent.
• Exemptions for a spouse: If you file a joint return you can claim an exemption for your spouse. If you file separately, you can only claim an exemption if your spouse has no gross income, isn't filing his/her own return, and wasn't the dependent of another taxpayer.
• Exemptions for a child: You can claim a dependent exemption if they meet the qualifying child test.

If you are subject to U.S. income tax, you must report your rental income as a cash-basis or accrual- basis taxpayer. If you are a cash-basis taxpayer, you report rental income on your return for the year you actually or constructively receive it and you deduct all expenses in the year you actually pay them.

No. If you hold a Cash App personal account and send or receive money for dinner, gifts, or from family or friends, you will not be subject to these new reporting requirements and will not receive a Form 1099-K to file with your tax return.

People sending money back and forth for their share of dinner don't have to worry about reporting such payments on their tax returns. However, the moment you begin accepting business payments on a P2P platform, you're responsible for reporting that income. P2P payment platforms, including PayPal, Venmo, Stripe, and others, are required to provide information to the IRS about customers who receive payments for the sale of goods and services through those platforms.

The threshold for this reporting used to be high. Through 2021, third-party payment platforms were required to report gross payments received for sellers who receive:

• over $20,000 in gross payment volume AND
• over 200 separate payments in a calendar year.
• Beginning in 2022, the threshold has been lowered to more than $600 in payments without any regard to the number of transactions.

There is no threshold for payment card transactions.