Tax refunds are fun, but paying taxes can sometimes be a drag. As Tax Day has come and gone, it’s a good time to reflect on the tax process. Did you enjoy getting a refund? Did you have to pay? Were you honest? Did you cheat? Sometimes you might cheat and you don’t even know it. If you’re unsure, here are three ways you may have accidently cheated on your taxes…
You won something: Have you ever won anything by calling into a radio show? Me either (except I may or may not have won some Clemson football tickets a few years ago…). Did you know that winning tickets to something is taxable? Yeah, you’re thinking the same thing I am, “that’s stupid”. While it may be dumb to us, it is indeed considered income.
You paid a kid: I pretty much hate yard work. Have you ever paid a kid to cut your grass? Did you know that kid can be considered your employee? The same rule can apply to your maid or housekeeper. If they’re not considered self-employed or don’t work for a company, then the IRS will probably consider them your employee. Just to be sure, read this.
You donated to charity: Whenever I drop off things at my local thrift store, they always ask if I want a receipt. I always say no. For those of you who say yes, how are you figuring up how much your donated items are worth? Chances are, whatever figure you’re coming up with is way too high. Due to depreciation, your old stuff isn’t very valuable anymore. I’m not going to give you an exact figure, but just know it’s probably not worth even a tiny fraction of what you originally paid for it.