Tempted to cut a few corners on your taxes? You may want to think twice. The IRS has a system in place that involves both automated and human reviews. Here are some common lies and mistakes to avoid when you file so you don't get in trouble.
Often those who lie about how much income they made will get caught when the IRS compares an employee's reported income with how much a business said they paid them.
2
Wrongfully Writing Off Costs as Business Expenses
If the amount of business expenses you report is 20% or more above the average, you'll most likely trigger an audit.
3
Not Accurately Reporting Money in Foreign Accounts
You now must say where your foreign accounts are, what institution they're with and the amount that's in them if it's above $50,000.
4
Wrongfully Claiming Dependents
This is a common error made by divorced parents, who each try to claim the same children as dependents. You'll also raise red flags if you claim a dependent who filed their own taxes.
5
Deducting Charitable Contributions That Don't Qualify
Though donations to many charities are tax-deductible, not every contribution you make to an organization counts. Make sure you check IRS guidelines.
6
Deducting All Medical Expenses
You can deduct medical expenses on your taxes, but it must be qualified unreimbursed medical care that exceeds 7.5% of your adjusted gross income.