Does accidentally over-reporting taxable income by let's say $500, result in penalties if audited? Not claiming $500 in losses.

[Bsch4477]

Over reporting income is not a problem unless it’s done to fraudulently obtain tax credits. 

[rjs]

The penalty is that you pay tax on $500 more income.

[fanfare]

If the IRS - based on tax documents - finds your error promptly, or you amend within three years, your extra tax is refunded to you.

@malakikh