Tis the season when we have to rummage through our records in order to prepare our taxes. In these tough economic times, it is important to make sure we do not pay more in taxes than we should. So exactly what should we do to prepare?
The truth is that 2008 is history. The only thing we can do is make sure we have documentation to support every deduction we take and take time to make sure we take every deduction to which we are entitled. However, we still do have until April 15 to invest in an IRA in order to reduce our tax liability for this year.
We should all begin planning now for 2009. The best form of planning is to set up some system to organize and keep track of our income and expenses for the year. This system can be something as simple as a file box where we file receipts or it may be some computer program such as Quick Books. I also encourage anyone who uses their vehicle for either their own business or their employers to set up some system to track miles and business expenses for this vehicle. The IRS requires that you keep track of the total miles driven for the year as well as how many of these miles are for commuting from home to the office and how many miles are used to make business calls.
Proper record keeping now will make next tax season much more tolerable and lessen the chance of missing some deduction. So let’s get organized.
Please reply with your comments or contact me at dalewsr34@gmail.com.
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