To save you multiple trips to the accountant you need the following tax saving tips:
1. Tax return from 2005. It will help your tax preparer to see correct tax data from last year.
2. All W-2's, 1099's, K-1's or any statements of income.
3. All Social Security numbers for family members with dates of birth.
4. Childcare expense receipts with valid federal ID and childcare address.
5. If you itemize your deductions bring mortgage interest statement. The interest on home mortgage is a major factor in itemizing your deductions.
6. Medical non-reimbursed expenses plus travel for medical purposes. Receipts and proof of all medical travel expenses.
7. All personal and property and real estate tax receipts.
8. Work related expenses such as travel and additional non-reimbursed expenses.
9. Charitable expenses and donation receipts.
10. Moving receipts if any.
11. College expenses receipts, books and tuition.
12. Receipts of IRA contributions if any.
13. If you self-employed calculate all receipts by categories:
a. Inventory on hand (Balance on hand at the beginning of the year plus any purchases minus balance on hand at the end of the year)
b. Supplies and materials.
c. Maintenance and Repairs receipts.
d. Travel log on cars if used for business purposes, to determine miles for the standard mileage deduction.
e. Accountant and attorney fees.
f. Advertising receipts.
g. Business insurance receipts.
As a golden rule present to your accountant as much documents as you can he should make determination if it is sufficient for claiming deduction. Remember in case of audit by the IRS, every deducted amount should be proven by the real receipts, statements and documents. Current changes require that taxpayer present receipt for all donations even $50.00. Good luck with filling, and remember ask questions. One of the best sources is the net for example forum on www.efamilyfinance.com professionals answer any tax related questions.
Vladimir Dubchak
Tax Adviser and Financial Strategist.
efamilyfinance.com
Posted December 28th, 2006 by vladdubchak
