Thursday, August 1, 2013

Will I Get Audited? Itemized Deductions Comparison

Do you wonder how your deductions compare with the other tax filers?  Here is the preliminary the IRS released from the 2011 tax returns.


The date is for those that had that particular deduction on their tax return.  For instance, most tax filers in the Under $15,000 category had no Medical Expenses.  This is just for those that did.  In fact, the Medical Expense Column only includes the deductible amount which is the amount over the 7 1/2% of Adjusted Gross Income.

Don't you have to wonder how a taxpayer who took the Medical Expenses Deduction with Under $15,000 on average could pay for $8,350 in Medical Deductions over their Adjusted Gross Income?

Don't worry, you won't automatically get audited for having above average deductions.  For example, taxes can vary by states that have income tax and those who do not.  However, if your deductions are disproportionately larger when compared with your income, your audit risk can go up.  Every tax return that is filed is scored by a top secret computerized formula and those with scores much different than the norm get pulled out and the audit department looks at them and decides when returns require a further look.

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