Leading up to the filing deadline can be a headache of filling out paperwork, searching for receipts, and making sure you have everything done properly. Once the rush of the season is over and the tax return has been received, many may find themselves asking now what?
Instead of slipping back into your routine, there are a few things you should do throughout the year that would make tax season next year MUCH easier.
- Keep a record of all business transaction! Do you travel for work? Log your mileage. Did you have to eat out on a work trip? Keep the receipt and note how much it was. These largely apply to 1099 employees, but is a good practice for everyone.
- Log any tax deductible donations, i.e. charity fundraisers, Salvation Army donations, etc.
- If you were unemployed, job search related fees can be deducted if you take note of all expenses (think mileage, parking fees).
- Major life moments, such as buying a house or having a baby, can also have an impact on your taxes. This is information you’ll need to share with your CPA with tax season comes again. You’ll also need to see what documents you need to save as proof.