TAXES-THINGS YOU MIGHT LIKE TO KNOW

Who Knew? 13 Things the Tax Man (or Woman) Won't Tell You.  1. If you earn less than $64,000 annually, many major tax-prep companies will give you their online filing guides. For information, go to irs.gov/uac/free-file-do-your-federal-taxes-for-free. Also, H&R Block offers free online support for people ages 17 to 50 who earn less than $62,000. 2. The holy trinity of quick refunds: File early, file online, and opt to receive your money through direct deposit. Some e-filing companies report getting refunds to customers in less than three weeks. 3. That said, refunds aren't as exciting as they may seem; you're getting money back that was yours to begin with, essentially lent to the government as an interest-free loan. It can be better to just decrease your paycheck withholdings- and then invest the extra money-rather than receive a lump sum at tax time. 4. Did you get a sign-up bonus for, say, opening a bank account or a credit card? You may have to pay taxes on that. While the IRS treats some rewards as nontaxable discounts (such as most frequent-flier rewards), other payouts are considered income. A rule of thumb: If a company sends you a 1099 form for a reward, you should report it. 5. Filing late in itself won't hurt your credit rating, but it could lead to penalties that will ratchet up the amount you owe the government. If you don't pay that debt, the IRS may file a federal tax lien-a public, legal claim against your property that can hurt your ability to get credit. 6. File even if you can't pay. While both failure-to-file and failure-to-pay penalties exist, the first is generally harsher. And don't panic if you can't pay what you owe the IRS. You'll have to fill out some forms and provide documentation, but you may be able to compromise on a lower amount if you meet certain requirements. (In 2014, the IRS settled with about 40 percent of the people who applied for reductions, with an average decrease of about $6,600.) 7. Itemizing can yield a bigger return, but be careful: Too many deductions may increase your chances of being audited. One red flag: charitable donations that seem disproportionate to your income. Intuit's ItsDeductible (turbotax .intuit.com/personal-taxes/ itsdeductible) can help you keep an exact record. 8. Another common red flag is excessive business deductions. The best defense: accurate records. If you travel for work, the MileIQ app will track your mileage. Meanwhile, apps such as Shoeboxed allow you to take photos of your receipts or scan your e-mail inbox to instantly log business expenses throughout the year. (Their services start at $9.95 a month, but free alternatives are available.) Shoeboxed even provides prepaid envelopes if you prefer sending receipts by snail mail. 9. Your weekend side projects might count as self-­employment, which means you'll have to make quarterly estimated tax payments in addition to filing your annual return. Don't forget that you can write off expenses for a home office, though the rules are very specific. For more information, go to irs.gov/businesses/small-businesses-self-employed/simplified-option-for-home-office-deduction. 10. If you're a homeowner who's dedicated to energy efficiency, you can earn tax credits of up to 30 percent on select projects-installing an Energy Star-qualified solar water heater, for example. 11. Even if you didn't put pretax money into a flexible spending account (FSA), you can still recoup some child-care expenses. Depending on your income, the government will refund up to 35 percent of the cost of day care, with a cap of $3,000 per child or $6,000 per family. The catch: You must be employed or actively looking for a job to qualify. 12. Want to avoid an audit? Don't use round numbers, as the IRS may assume you're guessing on expenditures. The government audited 1.2 million people at random in 2015, so there's no guarantee, but you can cut down on your chances by being precise. That said, don't freak out if you realize you forgot to sign your return-that alone almost certainly won't trigger an audit. 13. If you do get audited (gulp!) , don't go it alone. Hire an accountant, an enrolled agent, or a tax attorney who has experience dealing with the IRS. Sometimes it can be as simple as providing additional documents or filing an amended return, but it's best to work with a professional who knows the ropes. SOURCES: IRS.GOV, CNN.COM, USNEWS.COM, TURBOTAX.INTUIT.COM, HOWARDLEVYIRSLAWYER.COM, AARP.ORG, H&R BLOCK, ENERGYSTAR.GOV, AND DAVID BARRAL, CPA/PFS, CFP