Tips on Important Items to Report on Your Taxes

Thursday, January 14, 2016

Tax season is upon us and the IRS has some reminders for taxpayers. Basically, all sources of income are taxed by the IRS.  When you get ready to file your taxes there are some out some strange rules that you should not forget.

For example, if you decide to sell your used furniture, heirlooms or vehicles, the profit you make is taxable.  Even if you make a $50 profit, the IRS sees that as $50 in income. By chance, if you are unable to prove your profit, the IRS will view the whole value you sold it for as income, not just the gain. If you provide child care and get your earnings in cash, the income needs to be taxed.  Even if you trade favors in lieu of cash, the IRS will tax the market value of the service. If you choose to trade basketball game tickets that are worth similar values, that can be considered taxable

If you like to bet, the winnings you make from gambling are taxable too. Same if you win the billion dollar Powerball jackpot, it’s considered income, which is all taxed. The nature of taxes make lottery winners choose to take annual payments instead of a lump-sum payout that would equal a hefty big tax bill.  All prizes, gift cards or awards are taxed, even if it is not actual cash. For example, if you won a car in a raffle, you will be taxed on the the cash value of the car.

Those who work in the service industry and receive tips as part of your job, then you will be taxed on those tips because it is income. The IRS is still contemplating how or whether to tax workplace benefits or perks.

Let’s say you take out a loan and the lender forgives it, or cancels the debt, then you will need to pay tax.  A canceled debt is considered the same as income in the eyes of the IRS.  For example, if you took out a $100,000 from the bank and the bank happens to forgive it, the IRS considers that as if the bank gave you $100,000 in cash.

Tax attorneys, such as the  Strategic Tax Lawyers, who deal with lawsuits may have clients who need to pay the IRS because of taxes, even on the fees of the attorney.  If you win a lawsuit, the damages and interest can be taxed. 

Do you need to hire a reliable team of tax law professionals, which includes IRS Tax Lawyers, IRS Levy Lawyers, and IRS Fresh Start Lawyers, then contact the Strategic Tax Lawyers Firm.  We are tax lawyers who have years of success in IRS dealings.  Call the Strategic Tax Lawyers at (800) 669-4775 for a free consultation to assist you with your tax-related matters.