A Home Business Tax-time Tip Home Business Articles | February 16 Connor McGovern Youth Jersey , 2005 ?Unreported Income:? The best way to get the IRS to send you a love note suggesting you two get together for a chat. That means an AUDIT!
If you received W-2s andor 1099s, guess who else got copies? Yup,the IRS.And they now have a sophisticated computer program that matches every W-2 and 1099 with 1040 Tax Returns.
Guess what happens when they get a 1099 that isn?t reported on your 1040? Hey,you?re quick!
Although most income you receive is taxable Trysten Hill Youth Jersey ,and must be reported as ?earned income?for tax reporting purposes, there are some types of income that is only partially taxed or not taxed at all. A complete list can be found in IRS Publication 525,?Taxable and Nontaxable Income.? (Here?s a direct link to download IRS Publication 525: http:www.irs.govpublicationsp525index}
Some common examples of items NOT included in your income are:
-- Reimbursement for many Adoption expenses -- Child Support payments received by you -- Gifts, Bequests and Inheritances -- Workers' Compensation benefits -- Reimbursement for Meals and Lodging incurred for the convenience of your employer -- Compensatory Damages awarded by a court for Physical Injury or Physical Sickness -- Welfare Benefits -- Cash Rebates from a stores Taco Charlton Youth Jersey , dealers or manufacturers.
Want to slash your chances of an audit? 1. Report ALL income. 2. Sign your return. 3. Double- and triple-check your calculations 4. Double check your Social Security number.
Those are the four simple mistakes that trigger the majority of all IRS Audits. No kidding.
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