April 15 IRS tax deadline looms: 5 major changes that could impact your refund

Ensure error-free returns to avoid delays and check refund status with the IRS.

With the April 15 tax deadline fast approaching, many Americans are scrambling to file their returns. This year, there are several significant changes that could affect your tax refund. Here are five key updates taxpayers should be aware of before they submit their returns:

The tax deadline of April 15 is rapidly approaching, and many Americans are rushing to submit their taxes.(Unsplash/representative )

1. Disaster relief and extensions

Residents in areas affected by natural disasters may qualify for extended filing deadlines. For example, millions of people in Los Angeles, impacted by 2025 wildfires, have been granted an extension until October 15. Other disaster-affected regions may also benefit from similar relief measures, offering more time to file and adjust returns for casualty losses, as reported by The U.S. Sun.

2. Online sales and 1099-K forms

For those who sell goods or services online, the IRS now requires reporting of income from platforms like eBay and Etsy, especially for those who receive payments via credit or bank cards. If you earn over $600 annually through these platforms, you may receive a 1099-K form and are required to report this income on your tax return. Failing to do so could delay your refund.

3. Increased security with IRS PINs

To combat rising identity theft, the IRS now requires more taxpayers to use a Personal Identification Number (PIN) when filing electronically. This added security measure helps protect your tax data, ensuring it is only submitted by the rightful filer. Make sure to set up your IRS online account with this PIN before filing.

4. Electric vehicle tax credit

For taxpayers who purchased an electric vehicle with a $7,500 tax credit, it’s essential to report this on your return. This ensures that you receive the full credit. However, be aware that if your income exceeds certain limits, you may not qualify for the credit. Double-check the eligibility criteria before filing.

5. Penalties for underpayment

The IRS has ramped up penalties for underpayment of taxes, particularly for income not subject to withholding. If you haven't paid enough estimated tax throughout the year, you could face penalties up to 7% of the underpaid amount. It's important to review your quarterly estimated taxes to avoid unexpected fines.

Filing and refund tips

To avoid delays, make sure your tax return is error-free, as mistakes can extend processing times. Most taxpayers can expect their refund within 21 days if they e-file and choose direct deposit. For those who file by mail, expect longer processing times.

Taxpayers who need more time can file for an extension, giving them until October 15 to submit their returns. To check the status of your refund, the IRS provides a tool called "Where’s My Refund?" which updates within 24 hours for e-filings and within four weeks for paper returns.

As the deadline draws near, taxpayers are encouraged to stay informed about these key changes to ensure a smooth filing process and avoid any surprises come tax season.