Include all your income on your tax return.
Keep accurate and complete records of your income throughout the year as you earn it.
Wait until you get all your income statements before filing your tax return. Otherwise, you may have to file an amended return.
Check the records and informational returns you get from your employer, mortgage company, bank, or other sources of income (IRS Forms W-2, 1098, 1099, etc.) to make sure they're correct.
Make sure you know what income you earned is taxable and what is not
- Your tax liability may be affected by your occupation For example: If you’re a member of the military, clergy, etc. or life events such as foster care payments from a state. If you have questions about the taxability of your income, ask the IRS or consult a tax professional. Visit our page on Choosing a Tax Return Preparer for tips before you select one. Low Income Taxpayer Clinics are available for qualified individuals.
- United States (U.S.) citizens and resident aliens generally also need to report income received from foreign sources.
- Alternate sources of income can include virtual currencies and amounts from bartering transactions.
- If you receive tips, you’ll also have to report these as income.
A complete list of taxable and non-taxable income is available in IRS Publication 525, Taxable and Non-Taxable Income.
If the IRS finds a discrepancy
If you receive a notice that your tax return doesn’t match the income or payment information the IRS has on file, you should:
- Read your notice carefully — it explains the information the IRS received and how it affects your return.
- Respond to the notice whether you agree or disagree with the notice; the form explains what actions you can take. The notice should come with a response form, or other instructions on how to respond.
- If the information is wrong, you'll need to contact the business or person reporting the information. Ask them to correct it and provide the corrected information to the IRS. If the payer won't correct the document, include an explanation as to why the payer's information is incorrect.
- If you believe the information reported in the notice is incorrect because someone else is using your name or Social Security number, call the IRS right away. See Identity Theft for information on what to do and how to report this issue.
- If the information displayed in the notice is correct, you don't need to amend your tax return unless you have other additional income, credits or expenses to report.