Friday, March 4, 2011

8 Great Ways To Get Audited

Certain professions are prone to particular tax deductions. If you’re looking for a job in the Philadelphia area it may be tempting to try to take off things that seem essential in your search for employment. Even more alluring might be to not file a return at all. However, either of these options could land you in trouble with Uncle Sam.

You might not realize it but unemployment benefits and severance pay are taxable sources of income. Early withdrawals from retirement accounts will also increase the amount of taxes you owe. On top of that just because you need something doesn’t mean you’re entitled to it in the government’s point of view. They are going to get what’s due so make sure you know what deductions will raise red flags when you prepare your paperwork this year because nobody wants to face an audit.

  1. Pets – Simply because they depend on you doesn’t make them a dependant. If you opt to include an animal friend in your family it won’t be on the IRS’s nickel. You may see your pets as your children emotionally but only human dependants can be deducted.


  2. Hair Cuts, Spa Treatments, Mani/Pedis – You may not feel presentable for an interview without primping to perfection but if that’s the case you’re the one that will be paying for it.


  3. Clothes – The government isn’t concerned if you how up for your interview in a suit from Armani or the Salvation Army. If you want to beat the taxes on clothes do most of your wardrobe shopping over the tax free weekend at back to school time.


  4. Home office – You probably think you have a home office that qualifies but likely you don’t. This is a tricky track to take so make sure you understand it in and out before you try to write it off.


  5. Coffee/Caffeine – I don’t know about you but I spend a small fortune in caffeinated beverages that I depend on to get me through the work week. While I would love to be able to deduct my addiction I have to settle for signing up with the rewards program where I get immediate deductions.


  6. Cable TV/Internet – Who could possibly survive without being hooked up to the communications’ hub? Lots of people do it every day with access outside of the home, keeping up with the world in hot spots around town. If you prefer to have your place plugged in then you are going to be the one to pay for it.


  7. Gym Memberships/Personal Trainers – You have to stay healthy to keep up in the race but opting to join a gym will cost you out of your pocket. Look for low price options like signing up during a special or finding a government funded recreation center.


  8. Tech Updates – Keeping up with the Joneses may make the economy go round but the IRS won’t grant your gazillion gadgets a free pass. Keep your receipts, by managing your maintenance and warranty well you can get the most use out of your gizmos while they’re hot and then resell them when they’re not.


While some of these examples may apply to your specific situation, generally these sort of write offs are not allowed. If you’re unsure use a professional. Better yet take a tax class and pocket some extra taxable income as a part time prep person.


By Heather Fairchild - Heather is a multimedia developer with experience in web, film, photography and animation as well as traditional fine arts like painting and sculpting. In addition to writing for PhillyJobsBlog.com, she is co-founder of design and promotion company, Creative Kazoo with fellow Beyond.com blogger, Staci Dennis. Heather’s spare time consists of making puppets, teaching Sunday School, building Legos and doing science experiments with her children.

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