Four Ways You May Have Committed Tax Fraud
It's always a huge relief to get your taxes done. But you still have to worry about being audited. Here are four ways you may have accidentally committed tax fraud:
- You forgot to report all of your income. Sometimes money from side-gigs gets overlooked. Companies don't have to issue a 1099 unless they paid you more than $600 last year. But you're still supposed to report ALL income. Which also includes money from investments, rental properties, and gambling.
- You stretched the truth on your business expenses. Like deducting the entire cost of your car or your phone, even though you also use them when you're not working. In cases like that, you're only supposed to deduct a percentage. Otherwise, it's tax fraud.
- You inflated the value of your deductions. Like medical expenses, or work-related education expenses. It only applies if you itemized though. And more people took the standard deduction this year, because of the new tax code.
- You overvalued your non-cash donations. Like that one box of junk you gave to Goodwill, then claimed it was worth $500. If you lied, it's technically tax fraud. But it's hard for the government to prove.
Read more at Huffington Post.