Look at the details in the bill's portrait. If the bill is real, the eyes should be lifelike and the facial features should stand out clearly from the background.
Look at the Federal Reserve and Treasury Seals. The pointy "teeth" around their edges should be clear and sharp, instead of muddled or hazy.
Look at the intricate lines in the bill's border. Genuine bills have scrollwork that is highly defined, but the margins of counterfeit bills may be broken, fuzzy or indistinct.
Look at the serial number on the bill. The color and shade of these numbers should match that of the bill's Treasury Seal. Counterfeits also tend to have numbers that are unevenly spaced or lined up crooked.
Look for the distinctive red and blue fibers woven into the bill's paper. Counterfeiters often try to emulate these fibers by printing tiny red and blue lines on their bills, instead of embedding them in the fabric, itself.
Check to make sure that the monetary amount of the bill's numerals and written amounts match. This seems like an obvious point, but many counterfeiters try to raise the value of genuine bills by changing the numbers in its corners, even though the portrait remains unchanged (imagine a $10 bill with George Washington in the middle instead of Alexander Hamilton).