For many, income reporting at tax time is fairly straightforward.
You get a W-2, there’s your income. The IRS gets a copy of the W-2, your state gets a copy, and you keep a copy for yourself. Your income is reported on this form, and you don’t have to worry a great deal about other income reporting.
However, in a world that increasingly provides opportunities to earn money from side hustles and investments, reporting income has become a little more complex.
It can be tempting to avoid reporting income to the IRS, but it’s important to remember that failure to report your income is illegal, and can result in fines and penalties and even criminal charges.
As the IRS works to recapture some of the revenue it feels it has been losing lately, you should understand that more people are reporting your income to the IRS than before.
So you need to be on your toes.
See What Income Tax Forms Report Your Income That You Need to Keep an Eye Out For
[Read more…] about Tax Time: Are You Reporting Your Income? Different Tax Forms to Look For
