4 tips to avoid an audit this tax season
Tax day is less than two weeks away. As you prepare for this year’s returns, Marketplace’s Senior Producer of Personal Finance Paddy Hirsch brings you tips to avoid an audit.
1. Avoid entering round numbers: If you round up to the nearest thousand, the IRS may think it is a made up figure.
2. Make sure your numbers actually match up: Figures like your stated income should equal what your employer has entered on your W2 and 1099 forms.
3. Be meticulous about your home office expenses: Home office deductions are one of the most abused deductions out there, and often garner attention from the IRS. Keep all of your receipts and records of home office expenses. Avoid unusual home office deduction claims, like underwater basket weaving classes.
4. Back up your charitable deductions: Keep receipts for donations greater than $250. Photograph clothing, food, furniture or other charitable donations.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
