Here we are at tax season. Again. Hopefully, you’ve rounded up your receipts, figured out allowable deductions, and loaded all of that onto the proper tax forms. And if not, it’s not too late. You have time.
But this is not the time to get sloppy. Make sure you don’t run any of these red flags up the flagpole of your tax return and you will greatly reduce the chances of getting hit with the most dreaded of all tax events—the audit.
Double-check to make sure your arithmetic is correct. Math errors are not limited only to miscalculations. They could also be truncated numbers—dropping decimal places. Negative numbers need to have brackets around them. Consider attaching a spreadsheet or adding machine tape. Messed up math is the number one tax filing mistake so double-check everything. E-filing makes sure that math calculation errors don’t occur.
If you are self-employed your deductions need to be very carefully documented. As a member of this group, don’t be tempted to blur the line between personal and business expenses, especially mileage deductions and home-office usage.