• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Are you an ‘average’ taxpayer? That’s a good thing

by on
in Centerpiece,Small Business Tax,Small Business Tax Deduction Strategies

Although you may be an extraordinary person, sometimes it pays to be just “average.” Take your federal income tax return, for example.

Alert: If your deductions line up close to the average for taxpayers in your income category, you’re more likely to fly under the IRS’ radar. Conversely, if the deduction amounts are disproportionately higher than the average taxpayers in your group, it could set off alarms.

The charts below, derived from the Winter 2013 Statistics of Income (SOI) Bulletin and based on data from 2011 returns, provides valuable guidelines based on different levels of adjusted gross income (AGI).

Does this mean you’ll be audited if your deductions exceed the average amount? Not at all. Nor should you shy away from taking legitimate deductions even if they are disproportionately high for your income group. However, if you’re above the average, make sure you have the proof needed to support your claims.

Tip: The IRS also matches returns with other forms, like 1099s, to select individual audit targets.

 

 

 

 

 

 

 

 

 

* Only includes deductions by taxpayers with medical expenses exceeding 7.5% of AGI.
** Only includes deductions by taxpayers with casualty and theft losses exceeding 10% of AGI and miscellaneous expenses exceeding 2% of AGI.

 

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/36374/are-you-an-average-taxpayer-thats-a-good-thing "

Leave a Comment