Originally Posted by
Fourpaw
Just wrapping up our taxes here and seeing if anyone is aware of itemization limits in relation to ones gross income or AGI?
We showed 75k in w2 income and 12k in self-employment. After all our deductions (mortgage, medical, business, kids, IRA, etc) we are itemizing 28k in deductions.
I want to avoid an audit at all costs. I just don't remember my deductions to income rate to be so high. Currently this is around 30%.
Thanks.
FWIW, I've always done our own taxes. Our relationship of deductions to income has normally been closer to 20%.
This % alone is not an issue. I’ve even seen cases with 50% not get audited. Also, for tax purposes the deductions are not all treated the same. Itemized deductions (Schedule A) is evaluated separately than business and retirement contributions.