Taxes — they strike dread into the heart of anyone during the months of January through April! A little organization throughout the year can make the process of filing your taxes much less painful when the time actually comes. However, hastily filed or unprofessionally filed taxes are often riddled with mistakes, which can bring on an audit from the IRS. These common mistakes are red flags for the IRS, so be sure to watch out for these issues this tax season:
- Too many charitable deductions. You can count all sorts of things as charitable deductions, but if you have too many “donations” to charity that don’t line up with your income, be prepared for the IRS to ask some questions.
- Counting everything as a home business expense. Working from home can be a great way to earn a living. However, if you are deducting the square footage of your entire home as a business space because you answer emails in different rooms of your home, you’ll raise some red flags.
- “Guesstimating”. There are a few things that you can give a general figure to, but if you give every estimated expense an even, round number, that will set off an auditor’s alarms.
- Not reporting all sources of income. The IRS likely won’t care if you didn’t report the $20 you made at a garage sale, but if you are paid with any company that requires a 1099 form and don’t report that income, you might count on an audit.
These are just a few of the most common blunders when it comes to preparing for your taxes. For expert help, have your taxes filed by the experienced professionals here at Gecinger Tax & Accounting.