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Where did you come up with this? In case you did not know, the IRS budget has been curtailed and audits for middle income returns are rare. I have always had mileage claims and TurboTax gives me a low risk of audit, nor have I been audited. The one year I had another sort of issue, the mileage was never questioned. I checked a recent Kiplinger list of 16 audit triggers and medical deductions or medical mileage were not included.
The IRS flags this kind of deduction, so make sure you keep a good record. It's from Kiplinger, Google top 10 things for audit for retirees
Where does it talk about medical mileage in that article you linked to? If you are speaking of a general scare tactic about getting an audit, yes, claiming a hobby is a business is a bad idea. But I don't see anything in there about medical mileage which is what this thread is about. If I missed it, please quote it from that article.
If you have a legit return, I don't see any reason to operate out of fear your entire life of an IRS audit. I know people who have been through them and it isn't a big deal. It's not like they beat you up and leave you for dead in an alley some place.
Where does it talk about medical mileage in that article you linked to? If you are speaking of a general scare tactic about getting an audit, yes, claiming a hobby is a business is a bad idea. But I don't see anything in there about medical expenses or more specially medical mileage which is what this thread is about. If I missed it, please quote it from that article.
It's on item #4, medical deductions, where it states a large medical expense could send a red flag. Mileage is part of medical deductions. What scare tactics are we talking about? Failure to read?
It's on item #4, medical deductions, where it states a large medical expense could send a red flag. Mileage is part of medical deductions. What scare tactics are we talking about? Failure to read?
You are reading an article intended to scare people, to gain readership and it is pure hype. So what is your take away from this article, that someone who claims about $100 of medical mileage (driving and parking fees) for an entire year is considered a LARGE MEDICAL expense? You really think the IRS is targeting this vast abuse? You are reading into things from that article that simply aren't there. Nonsense.
This is not one of the 9 listed red flags. I cannot see anything that supports your claim even remotely.
I agree.
People thinking they are getting real journalism about something when it is just hype to gain click-through readership and increase advertising revenue. Just look at all the ads on their web pages. Like how they break up a short article into many pages so display ads can be served. There are no actual facts and numbers in the article to support that medical mileage claims are going to increase risk of an audit. Of course, the article then back pedals about this warning but telling you to keep good records. Like people who take deductions haven't been told that from day one.
One of the good things about Turbotax tax, is that it determines the risk of your actual return being audited.
My wife and I average about $20K a year for deducible medical expenses. Record keeping is really simple. I just look at my annual credit card statement. It shows all my payments for dental insurance, medicare supplemental insurance, LTC insurance and any payments for providers. Medicare or other records document each visit. I can quickly calculate mileage for those visits and I keep a worksheet in case I am questioned. The only difficulty is documenting costs of drugs and you can easily get an annual summary from your drug store....at least I can. If not, you might want to change drug stores.
I would never pass up deductions due to the notion that deductions can trigger an audit. You merely need to properly document the deductions. For a middle class taxpayer, the odds of a sit down audit are virtually nil. I have had my return questioned or prior to TurboTax, I made some calculation errors. The discrepancies were easily corrected and I paid the small fines, if any. I have never had the IRS ask for documentation on any deduction and I am not concerned if they do.
My wife and I average about $20K a year for deducible medical expenses. Record keeping is really simple. I just look at my annual credit card statement. It shows all my payments for dental insurance, medicare supplemental insurance, LTC insurance and any payments for providers. Medicare or other records document each visit. I can quickly calculate mileage for those visits and I keep a worksheet in case I am questioned. The only difficulty is documenting costs of drugs and you can easily get an annual summary from your drug store....at least I can. If not, you might want to change drug stores.
I would never pass up deductions due to the notion that deductions can trigger an audit. You merely need to properly document the deductions. For a middle class taxpayer, the odds of a sit down audit are virtually nil. I have had my return questioned or prior to TurboTax, I made some calculation errors. The discrepancies were easily corrected and I paid the small fines, if any. I have never had the IRS ask for documentation on any deduction and I am not concerned if they do.
I hope you keep actual bills and EOB's as credit card statements typically are not acceptable proof. They need to see that the procedure is in fact deductible. You could have gone to Dr. Smith for a face lift and your credit card statement won't show that. Now, your chances of audit are very slim, but it's just a good practice just in case.
How in the heck are you getting 20K in medical bills with a supplement plan???
This is not one of the 9 listed red flags. I cannot see anything that supports your claim even remotely.
Read #4 again. It says large medical expense could be a red flag for retiree, mileage going to doctors would be under this category. Where else would it be under?
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