Here's how to avoid red flags on your return and keep the taxman away.
Still, the IRS says you must report any income on your return regardless of whether you receive a Form 1099.
If you are a business taxpayer, you can deduct any legal expenses on your return that could be considered business expenses.
If the tax liability was determined by the amount reported on your return, then the collections period starts as of the date of filing.
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But be reasonable about every item on your return.
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Instead of inviting you to an IRS office or sending out an agent, you get a sternly worded letter demanding that you document some item on your return, often charitable contributions or business deductions.
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If you don't make adequate disclosure, or if the statements on your return rise to the level of fraud, you're not in any three-year safe harbor and the IRS can revisit your return at any time.
However, if you have a casualty loss from a federally declared disaster, you can choose to treat the loss as having occurred in the year immediately preceding the tax year in which the disaster happened, and you can deduct the loss on your return or amended return for that preceding tax year.
So, for example, if you file your 2012 return on February 1, 2013, but your return is due on April 15, 2013, the SOL will expire after April 15, 2016.
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You have to report any taxable portion of your scholarship or fellowship on your tax return.
If you fail to include the amount of the Form 1099 on your tax return, guess what?
Finally, remember that you are dealing with pretax dollars if you deduct property taxes on your federal return.
You cannot hide behind a tax professionals signature if you took an inappropriate position on your tax return.
Be sure to claim a refund on your tax return, says Mr. Charney.
As noted already, the distribution may not be taxable to you but you must report it on your tax return.
If you do anything aggressive on your tax return, keep a reserve.
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But with the roundabout method you have the stocks in a taxable account, where they can do some good on your tax return.
You get the pesky little slips of paper in January signaling that you have something to report on your tax return due April 15th.
Handle the difficult Form 8949 reconciliations and explanations required on your tax return after the extension and before the final due date of Oct. 15.
To report your income and losses from passive activities on your tax return, use federal form 8582, Passive Activity Loss Limitations (downloads as a pdf).
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If the distribution equals the total of qualified education expenses, then none of the amounts in boxes 1-3 need to be reported on your tax return.
You can direct some or all of your federal income tax refund into your health savings account by putting the routing and account number right on your tax return.
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It will run up transaction costs and force unwanted capital gains on you--gains that have to go on your tax return, unless you are investing through a retirement plan.
Subject to those constraints, the money can go to any organization to which you can make a gift that would qualify as a charitable deduction on your tax return.
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Subject to those constraints, the money could go to any organization to which you can make a gift that would qualify as a charitable deduction on your tax return.
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You might assume that after you turn all such expenses over to your accountant each year, he or she will fully deduct all of these things on your current return.
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You use IRS form 8863 (get the form and instructions here) to claim the American Opportunity Tax Credit, which is based on qualified college expenses that you pay for yourself, your spouse or a dependent for whom you claim an exemption on your tax return.
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