Tips to Avoid Red Flags for an Audit of Your Tax Returns
by Deirdre Blake
posted Mar 27 2014 6:53AM
D-day for filing your 2013 taxes is right around the corner and if you still have to file, know the red flags first.
Typos and math errors are big. A big drop in your income is also a signal to IRS auditors, along with attaching a business loss statement. If you have a traditional IRA, you can deduct some of what you've contributed. Do you have a kid in daycare? There's a tax credit for that too. If you teach, there's a deduction for some supplies you buy and if you're looking for a job or got a new one, travel to and from interviews and moving can also be written off. If you plan to claim the Earned Income Tax Credit, make sure you qualify and keep receipts for everything.