receipts

Be Organized

Have a file for each category, such as checks, health bills, etc. Do not be the kind of person who has receipts and cannot find them when needed. Never put all receipts in one big group; you will be sorting through them frantically when tax season comes. Make sure you print out receipts for items ordered online right away, or you will have lots of emails to go through before you can print out the receipts you need. Have record books and write down expenses in them regularly. Keep your items in a place where you can locate them ASAP. You may want to put non-deductable items in separate folders so you have proof that you paid them if needed. The last thing you tax man wants to see is a giant shoebox full of your receipts, but he would make more money when he gets everything organized for you. Put your receipts away when you get home so you do not lose them, and write them down soon. Store your records and keep them organized for seven years before you get rid of them because you will need them if you are audited.

Record Books

I write down my expenses in record books at least every two weeks. I want to stay on top of my bookwork and not have much to write down all at once. I have tabs on my record books for the various expenses. I also have folders with tabs for multiple items. When an old record book gets filled up, start a new one and put the tabs you will need in it.

You Cannot Deduct That

If in doubt about deducting something from your taxes, leave it off. You cannot deduct non-prescription items. If you donated and received a gift for doing so, you must take off what the gift is worth. If you donated $40.00 and the gift is worth $20.00, you can only deduct $20.00. Some people have told me they tried to deduct food they gave someone. That is a gift, and you cannot deduct that. If you give something to charity, it is only worth market value and no more. Get a receipt from the charity with their signature on it.

Do Your Bookwork Early

You can write down all your expenses on the papers you give your tax man now. I always have all of my bookwork done by Dec. 26th. I have my car mileage written down, health insurance, medicines, taxes, property insurance, and other expenses that occurred throughout the year. I bring this to my tax man so he can work on it early. I do have to wait on the 1099 ‘s for income, and if I am lucky, I will receive those by Feb. 15th. I then take that to my tax man, and soon, I have my taxes paid and do not have to try to get it done at the last minute. Do not put off for tomorrow what you can do today. Stay organized and on top of your bookwork.