(They Could Land You In Tax Trouble)
It can be a stressful experience preparing your taxes and filing them. It can be even more stressful however if you make these mistakes that land you into tax trouble. It’s important to remember that if you make mistakes that are serious enough, you might end up triggering an audit of your tax return or owe more in back taxes.
It’s early to be talking about tax season, but if you’re planning on filing your own taxes this year, here are four mistakes that you should avoid.
Don’t neglect to report all your income
Whatever your sources of income may be, whether it’s your regular paycheck, a side gig, gains that you’ve made on the stock market, or interest that you’ve earned from deposits in the bank, it’s important to remember that you should account for all of it in your tax return. If you don’t, the IRS may come looking for it.
Every time you make at least $600 in income working as an employee of any description, you get a 1099 form stating what you’ve made. The IRS gets a copy of the form, as well. This means that it makes no sense to try to hide your income from the IRS.
When you make any kind of income, you should report it on your tax return. Technically, you should even record smaller chunks of income, the kind for which you don’t get 1099 forms.