Because I have so many income tax deductions I can
no longer do my taxes on my own. I believe this is
for the best, because if I try to do them on my own
I know I would end up being faced with an audit. I
am not the best at keeping receipts, though I do keep
good records. However, I know that the IRS would be
more interested in what receipts I could produce rather
than what kind of records I kept. They don’t
care about how honest I think I am, they want to see
proof.
If you have income tax deductions, you must keep records
in receipts of everything. Even if you go to a tax
professional to get your taxes done, you still have
to keep a hold of each and every receipt you ever
get. If that receipt is related to an income tax deduction
then you must have it if the IRS asks to see it. Most
of the time if your taxes are simple enough, and you
have gone to someone to prepare your taxes, the IRS
will not bother to audit you. However if something
seems to be askew in your income tax return or when
your income tax deductions, you can bet they may be
paying you a visit very soon.
I am not the most organized person in the world so
I keep a special book for my income tax deductions.
The front part of the book are used to record every
single dollar I’d make and they make sure that
I know who paid me and what the pay was for. In the
back of the book I keep track of every single one
of my income tax deductions and have a special folder
in my filing cabinet for each and every receipt. Though
I try to be very good about this, I know I am missing
some things. I bought software for work purposes that
cost me $100. I am afraid I have lost that receipt.
No matter how dedicated I am to keeping things together,
something always ends up getting lost.
I work from home, and my income tax deductions are
minimal. However, as long as I am making more of a
profit than I am claiming in deductions I should be
just fine. I am an honest person, but the IRS knows
that many people are not. When it comes to reporting
how much money you made, and claiming income tax deductions,
make sure you are as truthful as you possibly can
be. Even leaving a couple hundred dollars worth of
income off of your income tax return can spell big
problems for you. There’s nothing funny about
income tax evasion, and what will happen to you if
you’re caught
