Time to Think About Taxes
Tax time is here. Do you have your 2014 documents in
order? Use this overview to get started. As always, consult with your tax
professional for the best advice for your individual circumstances.
Look Back to Plan Ahead
Review your 2013 return to remind you of the detailed information you gathered in prior years regarding itemized deductions, business use of home or car, and equipment depreciation.
Pull Together Documentation
Receipts, invoices, canceled checks, online bill pay or automatic deduction logs, mileage logs, and other documents substantiate deductions. If applicable to you, gather your documentation for:
Look Back to Plan Ahead
Review your 2013 return to remind you of the detailed information you gathered in prior years regarding itemized deductions, business use of home or car, and equipment depreciation.
Pull Together Documentation
Receipts, invoices, canceled checks, online bill pay or automatic deduction logs, mileage logs, and other documents substantiate deductions. If applicable to you, gather your documentation for:
- Charitable gifts
- Equipment purchases
- Memberships to professional and trade organizations
- Mileage for business
- Mileage for volunteering
- Office supplies
- Phone and data bills
- Subscriptions to professional and trade publications
- Utility bills (for business use of home)
Plan for 2015
If this year's gathering process does not go as smoothly as you'd like, devise a meaningful and easy-to-follow record system to start 2015 on the right foot. Having one place to keep your records will make it easier next year—as long as you dutifully put invoices, receipts and other documentation there. A file folder or box works fine if it is easily accessible. Electronic scanning and storage also works but may take more time.
If you deduct mileage expenses, keep a small notebook and pen in your glove compartment or center console. Commit to keeping track of every business-related mile traveled, along with the date and purpose of travel. You can also use the notes section of your smart phone to keep track of this information. Tally your mileage at the end of each month rather than waiting until the end of the year. This will assist you in substantiating expense and deduction claims going forward.
On a final note, store all tax-related records in a secure location for at least five years in case the IRS asks for further information.
Feel free to share this friendly reminder about tax time with your colleagues, friends and business associates.
If this year's gathering process does not go as smoothly as you'd like, devise a meaningful and easy-to-follow record system to start 2015 on the right foot. Having one place to keep your records will make it easier next year—as long as you dutifully put invoices, receipts and other documentation there. A file folder or box works fine if it is easily accessible. Electronic scanning and storage also works but may take more time.
If you deduct mileage expenses, keep a small notebook and pen in your glove compartment or center console. Commit to keeping track of every business-related mile traveled, along with the date and purpose of travel. You can also use the notes section of your smart phone to keep track of this information. Tally your mileage at the end of each month rather than waiting until the end of the year. This will assist you in substantiating expense and deduction claims going forward.
On a final note, store all tax-related records in a secure location for at least five years in case the IRS asks for further information.
Feel free to share this friendly reminder about tax time with your colleagues, friends and business associates.
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