Did the April 15 tax-filing deadline fill you with dread? Was the
prospect of a tax refund check overshadowed by the misery of pulling
together your tax records? Here are a few basic steps you can take to
simplify your record keeping and make 2005 less taxing.
* Keep records as you go through the year, rather than trying to
remember and organize 12 months' worth of activity in January or
February of next year.
* Color-code your checkbook register. At the end of each month, go
through your check register and highlight any charitable contributions
with a colored marker. If you deduct miscellaneous business expenses,
mark those in a different color. Use a third color if you write checks
for property taxes or other deductible taxes.
* Get organized. Buy a multi-pocket folder. Label the pockets for
different categories of deductible expenses and use this folder to store
receipts as you accumulate them. Set up file folders to hold the tax-
related papers you receive, such as investment statements, reports on
your mortgage, and year-end tax forms.
* Keep track of deductible mileage. Buy an inexpensive car mileage
log and get in the habit of writing down trips for charitable, medical,
or business purposes.
If you really want to improve your record keeping, you can use a
computer program that provides detailed reports for the various
tax-related categories. But even if you don't go that far, following the
simple steps above should make next year's tax season a little easier.
For additional record keeping suggestions that fit your financial and
tax situation, give us a call.
For more information or assistance, contact our office.
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