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Shopper's Market: Reducing your chances of being audited

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  • Description

    How not to send red flags to the IRS

  • Duration 1:59
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That deadline for filing your tax return is fast approaching.

To reduce your chances of being audited this year you'll need to know what the -- -- considers big red flag.

You may be able to claim a deduction for expenses related to your home office including home insurance and utilities costs.

But be prepared for the higher -- attention.

That I've got a big screen TV in there and I invite friends over to watch football so -- can't deduct it.

Some people ought to be really careful the IRS knows that's abuse so they'll check it.

-- have to have a really great documentation and photographs even of your home office to ensure that if you do get out of bed.

You have to back up to prove that you didn't -- the right thing your commute is not deductible but you can't claim a vehicle if you really do use it forbids.

Enough if -- painter contractor.

You know it it's pretty clear whether you using that truck for contracting or going away on the weekend it has to be more than 50%.

Business then you -- that the percentage of which is a for business.

People little booklet in your car that kind of shows you know the destinations UK the mileage that you accrued and then keep those receipts the higher -- -- -- your business the hobby especially if you have other income sources.

The general test is is there any hope of actually making a profit so it's okay to have a business that loses money you can take those deductions.

But if in all honesty it doesn't look like something that's ever gonna actually make you money the probably called -- hobby.

And if you file electronically.

Your chances of getting audited drop.

And that's because the chances are you making a mistake.

Drop.

So that's just one way to sort of curb the chances of being.

Looks twice.

By the higher -- -- make sure you.

File online if you earn less than 57000.

Dollars a year you can file your taxes for free online through the IRS website.

In you -- Brenda Buttner Fox News.

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