IT’S HERE AGAIN – TAX TIME!
It’s here again – tax time!
We know: Doing your taxes ranks right up there on your hate-to-do list. Hiding out isn’t going to help you (the IRS WILL find you), but with a little guidance, you too can tackle tax season with a smile.
We thought we’d turn to some experts for some sure-fire tips for tax preparation for this year and next:
n Look at Tax Prep as Household Finance 101: This is the one time of year when most people have a clear picture of their entire finances. It’s all out on the table, literally, so use that chance to start some planning for the future, says J. Michael Collins, a consumer-economics specialist based in Madison, Wis. He mentions that it’s a great time to open a savings account if you don’t already have one to put away some of the tax refund you have coming to you.
n Divide and Conquer: Many people work on their own as consultants, freelancers or independent contractors. It’s easy to confuse the dry-cleaning receipt (not deductible) with the parking ticket from a business meeting (deductible). That is just one of the reasons why Tampa, Fla., business writer Colin Flood suggests opening a separate checking account to keep business expenses easily organized and track-able.
n Give it Up: You know that closet in the guest room that is just bursting with things you don’t need? Get rid of the extra stuff and you’ll find yourself saving on your taxes. Plan donations, says Jeff Staley, managing partner of Freedom Tax Relief in San Mateo, Calif. Staley reminds donors to get receipts, and when you’re not sure how much to deduct, go online to sites like itsdeductible.com to learn fair values.
n The Virtual Shoebox: Receipts can be the bane of your organized office, but now you have help with a new online service called Shoeboxed.com. Simply dump all your receipts into a prepaid envelope and ship it to their location in North Carolina, where they scan and upload all of those bits and scraps into one neat Excel, PDF or Quickbooks file. The best part? You can take advantage of their free shredding service, since their files meet all IRS requirements. (Before sending your receipts on, however, you might consider making copies of them. Things do get lost in the mail, and this would provide backup for you.)
n Start Planning for Next Year: “What?” you may ask, since you’re just signing the forms for this year. But sketching out the upcoming year and paying estimated taxes may help you ease a tax burden.
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The writers are co-founders of Buttoned Up, a company dedicated to helping stressed women get organized.
Send ideas and questions to yourlife(at)getbuttonedup.com. For more columns, go to scrippsnews.com.)