Plan for Next Years Tax Season Now
The first idea is to organize your records. Keep a current summary of all deductible expenses and contributions throughout the year. Recording an expense as it happens will help you remember all the expenses or contributions you have incurred.
Another important step to take is related to non cash contributions of clothing and household items to Goodwill, DAV or other similar charities that accept used items as donations. Always get a receipt from the charity.
It is important to keep a detailed list of what was donated. Most charities can provide you with a listing of average values for the types of items they accept as donations. This is very important this time of year as you clean out your house for spring cleaning or in preparation for selling your home. Those non cash donations really add up quickly when you keep the right records.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.