Taxes 2011: Five Things You Might Not Expect To Pay Tax On | HuffPost Life

Five Surprising Things You Need To Pay Taxes On

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Remember: Taxes for 2011 are due on Tuesday, April 17. The IRS has said it plans to issue taxpayer refunds in 10 to 21 days. Electronic filing and using direct deposit can speed up a return.

If you have not yet filed your taxes, consider whether have missed these taxable items.

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Before You Go

Credit Card Promotions(01 of05)

Bonus frequent flier miles that are granted as part of a credit card's signing offer are taxable. That's what thousands of Citibank card holders learned last month after the bank mailed 1099 forms to people who earned extra points by signing up for a new card. If you receive a 1099, don't ignore it, said Kay Bell, a tax expert at BankRate.com. The IRS is expecting you to report this income. Earned reward points, frequent flier miles and gift cards that are part of a debit-card or credit-card reward program, however, are generally not subject to income tax because they are considered a rebate for spending. (credit:Flickr:kalleboo)

Rental Income(02 of05)

Rental income is taxable if you leased out your home or another space for more than 15 days last year. Serving as a part-time hotelier or landlord has become a big trend with the arrival of websites like AirBnB.com, which allow ordinary people to advertise and rent their homes by the night like an inn or bed-and-breakfast. The good news: You can pro-rate the mortgage interest, utilities, insurance and depreciation for the number of days your home is rented out and thereby reduce the amount of income taxed. Don't pay taxes on rental income if you rented out your primary residence for less than 15 days, according to the IRS. (credit:Flickr:JoeInSouthernCA)

Cash And Prizes(03 of05)

You must pay taxes on any prizes that can be converted into cash. That could include a variety of items, ranging from the iPad that you won in the office raffle to the $1,000 in cash captured in a poker game. "The general rule is that if it's under your control to convert to cash, then it is taxable," said Jackie Perlman, principal researcher at the Tax Institute for H&R Block. On the plus side, losses related to gambling can be deducted, but only as much as the amount of a win. For example, if you won $500 but lost $750, you can only report a loss of as much as $500. What is not deductible, however, are personal losses on items sold at a loss like a painting or car. (credit:Flickr:larrykang)

Bad Debt(04 of05)

You'll have to pay tax on forgiven debts. Writing down debt could appear to eliminate unmanageable monthly payments in the moment, but the amount written off in bad debt is considered income by the IRS. For example, if you consolidated your debt from $30,000 to $18,000, you are liable for the $12,000 that was forgiven. Interest paid on mortgages, home equity and student loans is tax deductible. But interest paid on car loans, personal loans and personal credit cards is not tax deductible. (credit:Flickr:DonkeyHotey)

Service Swaps(05 of05)

If you bartered professional services that are part of your existing business, what you got in return is taxable, according to the tax experts at H&R Block. For example, a house painter and a landscaper who agree to swap services would each need to declare as income the received services at the fair market value. But other business expenses, like interest paid on business purchases on a credit card are tax deductible. This is one reason that accountants recommend use of a dedicated card for business expenses, like new computers or travel. (credit:Flickr:Images_of_Money)

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