8 Ways You Might Be Cheating on Your Taxes
Whether we're pointing out frequently overlooked tax breaks, explaining how retirement income is taxed or providing tools that help you adjust your tax withholding, the editors here at Kiplinger want you to trim as much off your tax bill as legally possible. But note the word legally. Yes, we want you to beat the IRS and save on taxes, but only by following the tax code's rules. Save where you can, but pay what you legitimately owe.
Sometimes, though, taxpayers don't always stay within the bounds of the law on their Form 1040. Of course, there are out-and-out fraudsters who purposely avoid paying the IRS what they owe under the law. However, in many cases, taxpayers short the government unintentionally. Both the tax code and IRS forms are complicated, so it's easy to make an honest mistake if you're not careful. We know our readers don't fall into the first category--the fraudsters. (Otherwise, you wouldn't be coming to us for advice on how to comply with the law.) But we don't want you to make inadvertent errors, either. So here are eight mistakes to avoid so you don't accidently cheat Uncle Sam out of his cut.
Not Reporting Taxable Income
Failing to report all of your taxable income on Form 1040 is a big no-no. The general rule is that all income is taxable unless it's specifically exempt by law.
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