02/06/2025
Being audited can be scary. So before you prepare your return, keep in mind that certain red flags can increase your chances of being audited.
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Audit Trigger #1 :Underreporting Income
The IRS receives copies of your W-2s and 1099s, so if you don’t report all your 1099 and W-2 earnings, the IRS just might notice leading to an audit.
Audit Trigger #2️⃣ Excessive Deductions
While deductions do lower your taxable income, claiming unusually high amounts compared to your income can raise eyebrows.
📌 Example: A person earning $50,000 writes off $20,000 in business meals and travel. Really? 40% of your income spent on food and trips? 40%?! 🚩
3️⃣ Large Charitable Donations
When we bring our gently used goods to the Salvation Army and the Goodwill, KEEP YOUR RECEIPTS! Also, if you pay tithes at church, keep a record or request a Donation Reciept. Generosity is great, but if your charitable donations aren’t documented and seem unrealistic based on your income...you guessed it 🚩
How to Remain Audit-Proof:
✔️ Report all your income
✔️ Keep detailed records of deductions (your expenses)
✔️ Keep the receipts for every donation
✔️ Be reasonable with write-offs
📢 Tag a friend who needs to see this! And if you need tax help, I got you! 💼💰
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