Getting Organized for Taxes

     It’s coming up on that time of year once again and you need to start preparing NOW for the preparation of your tax returns.        

     Filling tax returns need not be a frustrating experience, if all the relevant documents are submitted along with the supporting claims for exceptions and deductions. Preparing in advance by keeping good records will make the process easier and smoother thus easing the possible stress levels of all individuals involved. 

     Perhaps the first thing to do is to file the tax forms early or on time and not leave it to the last minute where hundreds of things can go wrong due to the rush to get things done.  Some people forget you can file for an extension; however, that does not exempt you from the payment of any taxes that may be due.

     Having proper supporting documentations every step of the way is also another “do” point that should be taken seriously. Ensuring all ID numbers are filed with the application is also important as forgetting to include this can cause unnecessary delays and inconveniences.

     Being self employed or having a home based business requires a little more work in terms of filling tax returns. All corresponding documentation should ideally be supported with the relevant receipts, bills, sales slips and any other business related expense notifications.  NOTHING is too small as to think it should not be included.

     Areas that can be considered for claims would include office equipment, mileage records, business entertainment, supplies bought for the business, utilities and many other items which a good tax preparer will help you remember to include on your return.  

     Using financial bank statements to make a comparison on the final deductions made and whether there are any discrepancies is another important element to look into. Although you may want to think that EVERYTHING is deductible, you may want to educate yourself with the various government publications that are available.  It will also help to have a good preparer available if you have last minute questions.

     Mortgages are also another element that one can claim against when it comes to looking for tax deductions. The payment made on the interest can be used to get added relief from tax payments.

     If the business entity decides to support any charities or other similar kinds of needs such as volunteering for a good cause, this can also be a tax deduction platform for the individual.

     These are some items I thought of mentioning.  PLEASE refer your specific return needs to a competent professional in the tax field.  My comments are not to be accepted as specific laws or items that may apply to your specific needs

QUOTE TO CONSIDER

THOUGHTFUL GEM

"Sometimes I think the new tax forms are

going to become very simple.

It will only be one line:  

Add up your income and mail it in!"