Tax Nuances That Could Get You Audited
By most accounts, Internal Revenue Service auditors aren’t much fun to meet with. Even if you’ve filed your taxes with impeccable precision, facing an audit can be nerve-wracking, so you’re best off making sure you aren’t tossing up any signs that draw attention to yourself.
Time Magazine’s MoneyLand recommends avoiding these moves that place “audit me” signs on your rear end:
* Math errors. Make sure your calculations make it look as though you made or owe less than you actually did.
* Big charity deductions. Claiming charitable contributions of more than 3 percent of your earnings can nudge you toward the danger zone, and attempting to deduct big non-cash contributions can be trouble.
* Home offices. Make sure everything in your home office is used for business purposes. And know that salaried employees with this deduction tend to face more scrutiny than contractors.
Tax Tips: 7 Red Flags That Can Get You Audited [MoneyLand]
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