sometimes they do this if theres identity verification issues too. happened to my cousin last month

Had this exact same thing happen to me last year! Turns out it was because I had moved and updated my address with the IRS after filing but before they processed my refund. Even though my bank info was perfect, the address mismatch triggered their system to switch to paper check for "security reasons." If you've changed your address recently or there's any discrepancy between what's on file vs your return, that could be it. Super frustrating but at least the check should come within 6-8 weeks instead of the usual paper timeline.

You should check if your state offers a tax forgiveness or hardship program since you had medical issues. When I was hospitalized last year, I qualified for partial forgiveness of my state tax debt in Pennsylvania. Worth looking into!

As someone who's been through a similar multi-state tax situation, I can confirm what others have said - your federal refund should be safe from state tax collection. The IRS and state tax agencies operate separately, so they can't directly intercept your federal money for state debts. However, I'd strongly recommend being proactive about that $950 you owe. Since you mentioned medical expenses from your hiking accident, definitely look into hardship provisions in whichever state you owe (Michigan or Ohio). Both states have programs for taxpayers who faced unexpected medical situations. You'll need to document your medical expenses and recovery period, but it could reduce or even eliminate penalties and interest. Also consider calling the state tax department to set up a payment plan before they take further collection action. Even if it's just $50-100 per month, showing good faith effort to pay can prevent more aggressive collection measures. The key is addressing it now while you still have options, rather than waiting for them to escalate. Your federal refund should come through as expected, but don't let the state debt sit - it will only get more expensive with time.

I'm in almost the exact same situation! Filed February 15th, accepted the next day, have cycle code 20250705, claimed CTC for my daughter, and WMR has been stuck on "processing" for weeks now. It's so frustrating seeing everyone with different cycle codes getting their refunds while we're still waiting. I've been checking my transcript every Friday like someone mentioned and still just see the same cycle code with no updates. Really hoping we see some movement soon - I was counting on this refund for some home repairs that I've had to put off. Thanks for posting this, at least now I know I'm not alone in this weird limbo!

Same exact situation here! Filed February 14th, accepted February 15th, have cycle code 20250705 and claimed CTC for my 3-year-old. It's been almost 2 months with zero updates on WMR - just the generic "processing" message. I've been checking my transcript every Friday morning like some others suggested, but still just see the cycle code with no additional transaction codes. Starting to get really worried something went wrong with my return, but seeing all these similar stories is somewhat reassuring that it's just a massive backlog issue. Really need this refund for some unexpected medical bills that came up. The lack of communication from the IRS is the most frustrating part - at least give us an estimated timeline or something! Has anyone with our cycle code actually gotten their refund yet?

This has been an incredibly thorough and helpful discussion! As someone who's been investing in Bitcoin ETFs through my TSP (federal employee retirement plan), I was genuinely stressed about this question until reading through all these responses. What really drives the point home for me is that when I log into my TSP account and look at my Bitcoin ETF holdings, they're listed right alongside my S&P 500 index funds and bond funds - they're all just securities in my portfolio. I never receive any crypto, don't have wallet addresses, and couldn't even access the underlying Bitcoin if I wanted to. The comparison to gold mining stocks was particularly enlightening. If I own shares of Barrick Gold, I don't personally own gold bars - I own shares of a company that mines gold. Similarly, owning IBIT shares means I own shares of a fund that holds Bitcoin, not Bitcoin itself. I also appreciate everyone who went the extra mile to get direct confirmation from IRS agents and tax professionals. It's clear this is a widespread source of confusion this tax season, and having multiple independent confirmations really solidifies the consensus. For anyone still on the fence: Bitcoin ETF investments in retirement accounts = confidently answer "No" to the digital assets question. We're traditional investors holding securities, not crypto traders dealing with digital assets directly.

This thread has been absolutely invaluable! I've been dealing with the exact same confusion about my Bitcoin ETF holdings in my 401k and Roth IRA. After reading through everyone's experiences and research, I'm now confident that the answer is "No" to the digital assets question. What really clicked for me was understanding that the IRS question is targeting direct cryptocurrency activities - mining, staking, receiving crypto as payment, or trading on exchanges. When we invest in Bitcoin ETFs through retirement accounts, we're simply purchasing shares of SEC-registered funds, just like buying any other ETF or mutual fund. The timing of this confusion is really unfortunate - Bitcoin ETFs get approved and become popular right as we're filing taxes with this broadly-worded question that was written before these investment products existed. But the consensus from CPAs, IRS agents, brokerages, and tax professionals is clear: ETF shares are securities, not digital assets themselves. I also appreciate everyone sharing their verification methods - whether through tax software like taxr.ai, direct IRS contact via services like Claimyr, or CPA consultations. When multiple independent approaches all reach the same conclusion, it really gives confidence that we're interpreting this correctly. Thanks to everyone who took the time to research and share their experiences. This kind of detailed community discussion makes tax season so much less stressful for those of us just trying to invest responsibly for retirement!

Does anyone know if there's a way to see how close you are to the $600 threshold on PayPal? I've been selling some stuff from around the house and I'm not sure if I'm tracking it correctly.

This is really helpful information everyone! I'm in a similar situation with my small online business. One thing I'd add is that it's worth keeping detailed records of all your transactions throughout the year, not just when tax season comes around. I use a simple spreadsheet to track each PayPal payment as it comes in, noting whether it's for goods/services or personal, the amount, and what it was for. This makes it so much easier to calculate your totals and prepare for taxes, whether you hit the $600 threshold or not. Also, don't forget that if you do cross the threshold and receive a 1099-K, you can still deduct legitimate business expenses against that income - things like materials, shipping costs, PayPal fees, etc. So even if you get the form, your actual taxable income might be much lower than the gross amount reported.