Related To Story TAXES
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Double-Check Tax Returns For Red Flags
Self, Home Employees At Greater Risk
UPDATED: 9:55 am PDT October 13, 2010
Before you file your income tax return, there are some basic things you can do to reduce the chances that your return will be set aside for review or even audited. With a growing number of Americans opting to work at home, either as self-employed or as employees, there are growing opportunities for incorrect reporting of income and deductions.As a result, those who work from home are generally at higher risk of being audited. If that's you, make sure your books and records are complete and precise. Unusual charitable contributions can also be a red flag. While donations to most religious organizations, nonprofit schools, hospitals, public charities and veterans groups are deductible, you cannot deduct what you pay to sports clubs, foreign organizations, groups that are run for personal profit, groups that lobby for law changes, homeowners associations, individuals or political groups or candidates for public office. Remember to claim your deduction for charitable travel at 14 cents a mile if you itemize your deductions.
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