You know the deal: unless you\u2019re making some serious cash, it\u2019s highly unlikely that the IRS will audit you. For Millennials, the likelihood of a tax audit is pretty close to zero.<\/p>\n
That is, unless you end up with a suspicious-looking tax return. But how do you know if your tax return looks suspicious?<\/p>\n
Well, if you\u2019re trying to game the system, which, by the way, is a huge no-no, then chances are your tax return will have some red flags that spur the IRS to investigate.<\/p>\n
If you\u2019re not, however, there are certain things you can do that will still trigger an audit. These are 6 of the biggest tax filing mistakes to avoid, so you don\u2019t have to spend hours of your life searching for receipts while the IRS combs through your finances.<\/p>\n
Rounding numbers<\/strong><\/p>\n This may be obvious to you, but when you do your taxes, accuracy is paramount. If you made $57,320 last year, don\u2019t say you made $57,000 (or $58,000, either). Rounding to the nearest dollar is acceptable, but that\u2019s about it.<\/p>\n Put in the exact amounts for everything you can, from income, to how much you paid for childcare, to your mortgage interest. Estimates will work for certain things – for example, the utilities you paid for that apply to your home office – but in general, it\u2019s much safer to put accuracy above all else.<\/p>\n Mathematical mess-ups<\/strong><\/p>\n If you\u2019re doing your taxes yourself, make sure you check, double-check, and triple-check your math.<\/p>\n Writing a number down wrong or carrying a 2 when you meant to carry a 4 could jeopardize the accuracy of your entire return, making you more susceptible to owing additional taxes – and triggering an audit. That\u2019s one reason that using a service like E-File<\/a>, which does all your math for you, is a good idea.<\/p>\n You\u2019re overzealous in claiming business expenses or self-employment expenses<\/strong><\/p>\n Claiming a dinner during which you wooed a huge client to sign with your business is perfectly legitimate. Claiming the bespoke suit you bought to impress that client is not.<\/p>\n Business and self-employment expenses are places where people are often tempted to inflate their claims, even if only by a little bit.<\/p>\n Remember, however, that the IRS goes over thousands and thousands of business deductions every year. They have a good idea of what\u2019s typical and what\u2019s not. If you\u2019re making $45,000 and claiming $15,000 in business expenses, that\u2019s a pretty big red flag. \u2018<\/p>\n You forgot to report income<\/strong><\/p>\n Plenty of Millennials have a side hustle, LLC, or sole proprietorship they use to bring in additional income. As great as these income boosters are, they can make tax season a bit more complicated.<\/p>\n While your employer sends you that handy W-2 with all your income and withholding neatly reported, keeping track of every dollar you made throughout the year requires a bit more effort.<\/p>\n It\u2019s absolutely necessary that you do so though – otherwise, your records won\u2019t match up with the records of the business that paid you (yes, the IRS does check them against each other).<\/p>\n Forgetting to report income can not only mean you owe more taxes than you thought you did. It can also make the IRS think you\u2019re trying to hide income, which can mean you\u2019re next in line for an audit.<\/p>\n Nobody wants to be audited. Avoid it by using E-File to file your taxes fast, easily, and accurately.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" You know the deal: unless you\u2019re making some serious cash, it\u2019s highly unlikely that the IRS will audit you. For Millennials, the likelihood of a tax audit is pretty close to zero. That is, unless you end up with a suspicious-looking tax return. But how do you know if your tax return looks suspicious? Well, if you\u2019re trying to game the system, which, by the way, is a huge no-no, then chances are your tax return will have some red flags that spur the IRS to investigate.<\/p>\n