ORLANDO, Fla. – As the April 15 tax filing deadline approaches, many Americans are preparing to submit their returns. News 6 anchor Lisa Bell recently spoke with CBS News Business Analyst Jill Schlesinger to discuss what taxpayers need to know this year.
Avoiding delays amid IRS job cuts
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With recent job cuts at the IRS under the Trump administration, concerns about potential delays have surfaced. However, Schlesinger reassures taxpayers that filing electronically and opting for direct deposit can help avoid such issues.
“If you’re due a refund, you’ll probably get it within 21 days, as long as there are no issues with your return,” she explains.
Schlesinger also advises against relying on large refunds, suggesting adjustments to withholding to better manage finances throughout the year.
“Remember, a refund is your money. You’ve just let the government hang on to it for a whole year, and you didn’t even get paid interest for it. So if you get a big refund, change your withholding, make the adjustments and that way you can have the money throughout the year,” Schlesinger said.
Utilizing free tax filing resources
Many taxpayers are inundated with offers for tax filing services, but Schlesinger highlights several free resources available.
The IRS Free File program offers online products for individuals earning $84,000 or less, while the Volunteer Income Tax Assistance (VITA) program provides free help for those earning $67,000 or less, individuals with disabilities, and limited English-speaking taxpayers.
Additionally, the Tax Counseling for the Elderly program assists those aged 60 and older, focusing on pensions and retirement issues. Military members can benefit from the Department of Defense’s MilTax program, which offers free tax preparation and filing software without income limits.
New rules for online sales income
This year brings changes for those earning money through online sales. Previously, platforms issued tax documents for sales exceeding $20,000, but the threshold has now dropped to $5,000. Schlesinger advises taxpayers to report all income, regardless of receiving an official tax form, to avoid complications with the IRS.
“So, if you sold, let’s say, a ticket or goods or services online, you may be surprised if you get a tax form from PayPal or eBay. So that’s what it represents, the stuff that you sold online. Just know that that threshold that was at $20,000 is now at $5,000. It’s going to $2,500 next year and then $600 the year after,” Schlesinger said. “I think it’s really important to stress that whether or not you get this official tax form, just report any income that you receive on your return. That will avoid headaches and little correspondence from the IRS.”
Consumer confidence and economic uncertainty
The interview also touched on consumer confidence, which has recently declined.
Schlesinger attributes this to economic uncertainty, including concerns about tariffs, immigration, and potential job cuts. While some reports indicate a softening economy, Schlesinger cautions against making drastic financial changes, emphasizing the need for more concrete data before drawing conclusions.
For more insights from Jill Schlesinger, tune in to CBS Mornings and the CBS Evening News, or visit JillOnMoney.com.