Audits and Taxes
The FIFA World Cup is over and now we turn our attention to FUTA ... the Federal Unemployment Tax Act! Colorado's unemployment tax is going up 150% in 2 years (from 2012 to 2014) to rebuild our state's unemployment offers. (2) Thank you, employed taxpayers!
In other tax news, you may be interested to know how much the average person takes in personal deductions. Although the deductions rise as the income rises, the average deductions for folks under $100,000 of adjusted gross income (AGI) are surprisingly high-over $15,000 per year! For folks earning between $100,000 and $200,000 AGI, the deductions average $26,083. Between $200k and $250k AGI, deductions rise quickly to $37,194. Over $250,000 AGI, the average personal deductions increase to $91,876(1) which may not be too surprising, given that some folks earn astronomical incomes.
Perhaps you should get more tax deductions than you are currently receiving. If you feel like you're at risk of being audited because you're getting too many deductions, then you might want to look at common audit triggers. Here is a list put together by Kiplingers: kiplinger.com/letterlinks/auditredflags