Very small income for the year...Self Employed IRS Audit Risk?

Question

So I was going through my bank statements for the year trying to figure out exactly how much I've made this year so far and found that it was a lot less than expected. I've only made around $4,000 in income for the whole year and my grandmother has been helping me out paying my rent in the meantime while i get my business going but not claiming me as a dependent. My question is...am I likely to get audited for having such a low income for the year? I'm only 24 and this is my first year in business (its telephone psychic work) so hopefully next year will be a lot more productive, but I'm scared of the IRS thinking my low income is suspicious and auditing me...everyone tells me I have nothing to be worried about from an IRS audit since I'm being honest and I know that ... but I still want to know if this looks bad. This whole working from home thing is very intimidating when it comes to taxes. thanks for the responses... Only about $800 of my income Is reported on a 1099 from a company... The rest is collected through paypal on my website and is up to me to keep track of. Either way I'll be reporting it all obviously (jail isn't my cup of tea) but I was curious of the odds. Thanks for the replies

3 weeks ago - 3 answers

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IRS has 'bullet' signs that trigger audits ie. excessive expenses, donations, etc very doubtful that your low income would trigger any audit unless they found a huge bank account you maintained, you bought a Hummer during the year, and a fancy boat etc, those would trigger an audit on your $4000 reported income

by tro

3 weeks ago

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