Several approaches can improve the odds that you won’t be caught in an audit. Some are surprisingly simple. These include fact-checking names and Social Security numbers for you, your spouse and dependents and filling out accurate occupational descriptions for you and your spouse.
Under that program, IRS has created a number of composite hypothetical taxpayers. The agency's computers compare your return with those of the hypothetical taxpayers. The further your return is from the statistical norms, the more the computer clicks. And, the more the computer clicks, the higher the probability your return will be kicked out for review.
The table below gives average itemized deductions for 2009 returns filed in 2010. If your deductions are above average, the IRS is more likely to notice you.
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US taxpayers' average deductions
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Adjusted gross income
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Interest
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Taxes
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Charity
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Medical
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| Under $15,000 | $8,838 | $3,337 | $1,496 | $8,414 |
| $15,000-$29,999 | 8,434 | 3,184 | 2,048 | 7,783 |
| $30,000-$49,999 | 8,699 | 3,943 | 2,274 | 7,028 |
| $50,000-$99,999 | 10,153 | 6,247 | 2,775 | 7,269 |
| $100,000-$199,999 | 13,456 | 11,069 | 3,888 | 9,269 |
| $200,000-$249,999 | 17,572 | 18,524 | 5,947 | 21,599 |
| $250,000 and up | 25,227 | 48,317 | 18,488 | 38,149 |
Regardless of the averages, deduct only the expenses you actually incurred. If you spent more than the average, claim it. Just be prepared to substantiate your numbers.
Sources:
azcentral.com
msn.com
Read more at: Tax Times blog
