I had 2 sources of 1099-misc income 2016 and only 1 in 2017. My audit risk was low in 2016 on the Turbo Tax Audit Meter now this year it's medium for 3 reasons, I have a schedule C, Significant reduction in business income from last year and business expenses are significantly higher than my business income. I also have a FT regular job as does my wife but obviously if I dropped my insurance sales business but kept my online educational coordinator business my income will drop and my expenses for home office will be proportionately higher. Should I be worried?
The Audit risk meter in TurboTax is a general guideline from information of what the IRS audits from year-to-year. The IRS may focus on various issues including identity, and self-employed business income and expenses.
Your income and financial information has changed this year, however the IRS has looked very closely at 1099-MISC income and deductions for many years. Moving to medium risk does not necessarily mean the IRS will audit your return.
The following article may be helpful in understanding the TurboTax audit meter:
https://ttlc.intuit.com/questions/1900711-about-the-audit-risk-meter
The Audit risk meter in TurboTax is a general guideline from information of what the IRS audits from year-to-year. The IRS may focus on various issues including identity, and self-employed business income and expenses.
Your income and financial information has changed this year, however the IRS has looked very closely at 1099-MISC income and deductions for many years. Moving to medium risk does not necessarily mean the IRS will audit your return.
The following article may be helpful in understanding the TurboTax audit meter:
https://ttlc.intuit.com/questions/1900711-about-the-audit-risk-meter