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. Here's one: Use a big calculator.

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.

 

 

About the author

Paddy Hirsch is a Senior Editor at Marketplace and the creator and host of the Marketplace Whiteboard. Follow Paddy on Twitter @paddyhirsch and on facebook at www.facebook.com/paddyhirsch101

Comments

I agree to American Public Media's Terms and Conditions.
With Generous Support From...