What are the odds of getting audited, and what raises my audit risk?

Audit rates are low for most taxpayers — the IRS has audited well under 1% of individual returns in recent years, and the majority of those are handled by mail rather than in person. Risk rises with income and with certain red flags: large charitable deductions relative to income, a Schedule C business showing repeated losses or lots of round numbers, big home-office or vehicle deductions, unreported income the IRS can match to a 1099, claiming the Earned Income Tax Credit, and cryptocurrency activity. Very high incomes and certain refundable credits draw disproportionate attention. The best protection isn't avoiding legitimate deductions — it's documenting them. Keep receipts, mileage logs, and account statements for at least three years, and report all income the IRS already sees on information returns.