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10 Myths About IRS Audits

7

You Have to Make Big Money to Be Audited

rich couple toasting each other
You don't have to be a millionaire to be audited. The IRS audits people in all income brackets. Andrea Chu/Digital Vision/Thinkstock

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While it may be true that big businesses and those earning large incomes are usually targets for IRS probes, this doesn't necessarily mean that those residing within low or middle-income brackets won't get audited.

In reality, who make between $25,000 and $500,000 generally are audited at roughly the same rate, around one-half of one percent of all returns [source: IRS].

Additionally, the IRS has been cracking down on taxpayers who fraudulently claim the earned income tax credit, a big tax break worth an average of up to $6,660 in 2020 if you have three or more children and an income of up to $50,594 for a single parent and up to $56,844 for married couple filing jointly [source: IRS]

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