Tax Day is April 18, and it's getting closer every day. ABC2 News spoke with David Rosen, Partner and Taxes Director at Rosen, Sapperstein, and Friedlander, on the do's and don'ts of taxes.
Not as many people get audited as you may think, it's really only about 0.7 percent of all tax returns, according to Rosen.
A computer program scans tax returns and looks at the amount you reported as your income and the deductions, and decides if you fall out of the acceptable range.
"There is a higher likelihood at higher income levels. There is a higher likelihood if you have significant losses or deductions on your return," Rosen said.
Red Flags to avoid:
- Not reporting all taxable income, like gambling profits or money made under the table.
- Taking disproportional deductions from things like charity, or business expenses.
Things to look for that could put money back in your pocket:
- Energy-saving home improvements.
- Anything you gave to charity that has a monetary value.
- If you're self employed, business travel.
"You are required however to obtain a receipt, and be able to substantiate the value, [of charitable donations]" Rosen said.
His top tip for anyone filing their taxes, "I would recommend using the resources available.. at a minimum to use the internet and look up items like Top Tax Tips. If you have the ability, consult a professional. You will get much better feedback on your specific situation," Rosen said.
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