• IRS Audit Risk

    Asked by happydyad on Sunday, April 12, 2015

    IRS Audit Risk

    Has anyone here been audited for high medical bills? My medical expenses took 1/3 of my income last year. I have documentation for all of it, of course, but the idea of dealing with an audit is stressful. I can't imagine what the real thing would be like! Any advice is very welcome!

    12 Answers from the Community

    12 answers
    • Jalemans' Avatar
      Jalemans

      I thought for sure I'd be able to deduct some medical expenses for last year. My out of pocket exceeded what I earned. However, I had to take money from my IRA which then increased my income. Had no choice since the hospital didn't offer a payment plan longer than 3 months & they threatened to refuse treatment if I didn't pay them. we still came really close to being able to deduct some of it, but the IRS raised the percentage of your income that you cannot deduct to 10%. All in all it stinks! we still had to pay in several thousand (& I had taxes taken out of my IRA distribution).

      Anyway, the number 1 reason people file bankruptcy is medical bills. I highly doubt that if you are able to deduct something for medical that it would immediately be a reason for an audit. If you are not getting a huge refund I doubt you will have any problem. They are looking for people who cheat & we are small fish.

      over 6 years ago
    • barryboomer's Avatar
      barryboomer

      It's a freaking joke. They should be auditing The Fed, Big Pharma or some if the huge Cancer Fundraising Organizations.....Afraid what they would find. How about auditing ALL the Large Churches in America. Man would that be fun....also the Catholic Church should be audited. NOT US...it's disgusting what we have to put up with....we are like human punching bags.

      over 6 years ago
    • DOS's Avatar
      DOS

      I had lots of medical expenses in 2012 and 2013, and filed them on our taxes, after never having claimed any medical before that. I use TurboTax, which includes a "Risk of Audit" feature, and it showed "Very Low Risk" even with the large deductions. Unless the IRS has been unhappy with any of your precious years' filings, I agree that you are unlikely to trigger an audit by filing for your medical expenses.

      over 6 years ago
    • monamo's Avatar
      monamo

      I got audited for charity donations once (way back when...) it was pretty easy. They asked for copies of the receipts, I mailed them in, and that was that.

      over 6 years ago
    • BarbarainBham's Avatar
      BarbarainBham

      That's right, if you have receipts, there's nothing to getting audited. Also I heard in the last month that the IRS is so short-handed this year, that less people will be audited than ever before. I would guess that means they'll be looking for people or entities they can get the most from.

      BarryBoomer, why do you want IRS to audit large churches and the Catholic Church, when they are supposed to be tax-exempt? I think the IRS will have their hands full "enforcing penalties/taxes related to ObamaCare," which points out how dumb it was for the IRS to be named to do that.

      over 6 years ago
    • barryboomer's Avatar
      barryboomer

      Because there is so much fraud and Scams in MOST Religions and SO MUCH Money being pilfered that it should be exposed THAT'S WHY. PLUS they SHOULD Pay taxes especially the Mega Churches and the Pastors....too many Jet Planes and Houses in the Cayman's for my taste. The Catholic Church is like a Mafia making trillions of dollars and I just find it all unseemly and taking advantage of people. WE Don't need a Middle Man for us to talk to GOD.....IF WE are searching for God HE has already found us. Didn't mean to ruffle Religious People's feathers but my beef is with the Business End of Religion....ugh....I say Medicare for ALL cradle to grave.....everybody IN.

      over 6 years ago
    • PinkPeony's Avatar
      PinkPeony

      Happydyad, did you do your own taxes, or do you use a CPA? If I am audited, my CPA goes into the audit with me. You are in good shape if you have all of your receipts. Please don't worry. Be well! :)

      over 6 years ago
    • BarbarainBham's Avatar
      BarbarainBham

      BarryBoomer, I agree a church with a jet plane and houses in the Caymans does need to pay taxes---sounds like a business. I guess they're the ones on TV. Sorry, I'm not familiar with the Catholic Church's doings.

      over 6 years ago
    • barryboomer's Avatar
      barryboomer

      The Catholic Church is WORSE.....worth Trillions and have Bishops and Cardinals And Priests and nuns and all for WHAT....to help me talk to God....? I don't need them but they are RICH at the top and they own more real estate on fifth ave in NY than anybody. Lots of Pedophiles and Lots of crapola.

      over 6 years ago
    • Kathy1's Avatar
      Kathy1

      I've had extensive medical expenses for the last several years. My accountant said as long as those medical expenses exceed 10% of yur income they can be deducted. I have deducted them and never been audited. I have all receipts just in case but always worried. My accountant tells me every year not to worry and if for some strange reason they do audit me he will handle it! Hope this helps.

      over 6 years ago
    • fiddler's Avatar
      fiddler

      I heard that IRS is less likely to do an audit if the return is prepared by a professional, someone enrolled as a tax expert.

      over 6 years ago
    • happydyad's Avatar
      happydyad

      You guys are so great!!! Thank you for all the helpful comments and wonderful support! My filing thru Turbo Tax and have consulted an accountant. I've got my documentation all lined up and I'm braced for impact so just gonna send it in and let the chips fall wherever they may! LOL! At least I can laugh about it now. BTW, it's been a real gut wrencher going through all these bills. I'm reminded of every miserable little bump in the road and a few warm moments as well. Last year was my diagnosis and surgery year so a lot of emotion is in all those bills. I'm sure you know what I mean! Again, you are GREAT! Thank you! Thank you! Judy

      over 6 years ago

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