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Beyond “Little Known” Tax Deductions, Worry Instead About Forgotten INCOME
Posted By Ron On April 10, 2013 @ 5:45 AM In Government,Personal Finance,Taxes | 7 Comments
You may have made more last year than you realize, at least that’s how the IRS views it.
 This time of year, you’ll find blog post after blog post, news article after news article, pundit after pundit writing and talking about “little known tax deductions.” Those don’t scare me. What scares me are “little known” or worse – forgotten – sources of income that are subject to taxes. The IRS has a much better chance of finding income you failed to report than in discovering that you actually donated 7 garbage bags of used clothing  rather than 9 bags of used clothing  to the Salvation Army. So where do you think the IRS’s focus will be?
Where could I have earned extra money?
As always, check with your own tax professional to insure you pay the proper amount of taxes, but watch out for these extra sources of income:
If you’ve employed ways to make extra money , and you’ve been successful at it – GREAT! Just make sure you accurately report all cash income to the IRS. As tempting as it may be to under-report cash generated from a business, it isn’t worth the risk. The penalties, interest, and future scrutiny will drive you crazy.