There are certain tax deductions, more so than others, that can lead to an IRS audit.

Not many things are as scary as an IRS audit and there are some tax deductions that can lead to a higher risk on your tax return. Be sure to take the right steps when reporting these three.

Charitable giving

Giving generously is rewarding, but it can increase your risk of an audit. Overall, the IRS does look closely at those who donate a substantial portion of their income. Those who also donate things like cars or household items do receive scrutiny as well. Be sure to get a letter from the charitable organization that proves your donations. Anytime a non-monetary donation exceeds $500, be sure to fill out Form 8283. If the donation exceeds $5,000 in value, then additional disclosure will need to be included with the form and an appraisal by someone the IRS finds to be a “qualified appraiser”.

Home office expenses

For taxpayers who are self-employed, they may claim tax deductions for a home office. If you work form home, you are definitely able to and should claim a portion of those expenses. Be sure to only deduct the expense for the square footage of space that you actually use. The most important thing to remember is to claim only the space that is used exclusively for work. If the space is used for leisure or a combo of both, then it won’t count. The IRS looks at this item especially hard because its completely up to the honesty of the taxpayer.

Unreimbursed employee expenses

This tax deduction gets a lot of attention from the IRS because employers will generally reimburse expenses. Any business expenses that have not been reimbursed are only deductible when they exceed 2% of you adjusted gross income. The IRS publication 529 lists items that qualify from legal fees related to your job to professional association fees, or even a passport for a business trip. The most important thing to keep in mind is to claim any tax deduction for which you rightfully quality. Just keep proper documentation.

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