Daily Money - Read this before filing your taxes

3. The 1099-K saga continues

The IRS has been ever-so-slowly implementing new 1099-K reporting requirements for online marketplaces and digital payment processors. Although the threshold is eventually going to be $600, for 2024, people who made more than $5,000 selling goods and/or services on sites like StubHub or eBay and taken payment through a service like Venmo or PayPal will receive 1099-Ks.

The actual taxation hasn't shifted, but the documentation has (and that's caused a ton of confusion). Lisa Greene-Lewis, CPA and tax expert with Intuit TurboTax, says self-employed folks, online sellers and side giggers should pay careful attention.

"If you are a casual online seller, you may receive a Form 1099-K, but you would not pay taxes on the entire amount reported, and you could actually have a loss," she adds. "You have to make sure you deduct the cost of the item you sell from the sales price. You will be taxed on the gain and not the full amount of the proceeds."

For 2025, the 1099-K threshold drops to $2,500.

4. The IRS is laying off thousands of staffers

Since retaking office in January, President Donald Trump has made it a priority to slash what he sees as unnecessary government spending. Last week, he began targeting the IRS, where about 7,000 employees will be laid off, according to the Washington Post.

Given the timing, there are a lot of questions about how this will affect the ongoing tax season. Definite answers are scarce, but the Trump administration is reportedly taking a hard look at recent IRS hires, which likely include expanded staff in enforcement (aka audits) and customer service.

While former IRS Commissioner Chuck Rettig said in a statement that "there should not be a significant impact on current filing season operations," he acknowledged that a lack of staffing and funding will likely decrease the volume of examinations the IRS can conduct — and possibly hurt the agency's ability to crack down on non-compliers.

5. A political battle is looming

Scholars who read Issue #268 will recall that Trump is pushing for extensions to a handful of Tax Cuts and Jobs Act provisions that are set to expire this December. Nicknamed the TCJA, the 2017 law significantly changed the way Americans do taxes. Now, it faces a somewhat uphill battle, given the razor-thin margin the Republican party has in Congress.

To be clear: This year's taxes aren't affected.

But looking forward, "this is where taxes will change drastically — specifically, areas like higher itemized deductions allowed for state and local taxes, relatively higher tax rates and a halving of the standard deduction are all on the table of what may occur without any legislative intervention," Long says.

This tax season isn't chock-full of the pandemic-era changes I may have become accustomed to.

There are a few quirks to watch out for, but "generally, completing your 2024 tax returns (due April 15, 2025) will be very similar to how you completed your 2023 tax returns," Long says.

The New York Mets made waves in December when they signed Juan Soto to a 15-year, $765 million contract. In the massive deal, Soto got everything he wanted… except his uniform number of choice, 22. So when Brett Baty agreed to give up the coveted digits, Soto made it worth his while — with a $92,000 Chevy Tahoe. Baty, who had been driving the same 2016 Toyota 4Runner since high school, was overjoyed with the gift. "I come into spring training every single year, and I'm like, 'I'm going to get a new car. I'm going to get a new car,'" he told reporters. And that he did.

See you next week.

P.S. Have you filed your taxes yet? Would you buy a $19 strawberry? If someone gifted you a car, which model would you want? Send Onyx Storm theories to julia@money.com.