Wealth Wednesday: Tips for Avoiding an IRS Audit

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  • Use Tax Software
  • Double Check Those Home Office Expenses
  • Double-Check Oversize Deductions
  • Report All Income Accurately
  • Stay On the Up-and-Up
  • Check and Re-Check
  • Six Tips
  • Tap Into Free Tax Prep Help

Double-Check Oversize Deductions

Keep an eye on deductions that look too big for your income level. If, for example, you make $30,000 a year and claim to donate half that amount to a local charity, the IRS’ red flag is sure to be raised. Put simply, the bigger the deduction, the higher the odds of a possible audit. Discuss any legitimate, large claims with your accountant or tax preparer and be able to back up all deductions with receipts before hitting send on that return. (Photo: GettyImages)

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