Since tax season is upon us, here are a few helpful tips to prepare
for the upcoming 2011 tax season!
- Make sure you your tax documents
organized and located all in one place in order to reduce the chance
of misplacing an important document.
- If you own a business or are an
employee who needs to drive for business, keep track of your
mileage. Keep a notebook in the glove-box and write down your
business miles that day! Although the IRS allows you to recreate a
mileage log, it is best to keep a mileage log. The mileage rate for
2010 is 50 cents per mile.
- If you make a donation to charity,
make sure you get a receipt. The IRS loves to call on people who
donate a lot. If you have the documentation, you'll beat them.
- If you are a teacher, you can
deduct the cost of supplies. You can deduct the first $250 of
supplies without itemizing, but anything above that will require
itemizing and documentation. This can add up quick as I know
teachers spend a great deal out of their pockets.
- If you moved over 50 miles to new
employment, you should qualify for moving expense deductions. You
can deduct most things with the actual cost of the move, such as
transportation, storage, car mileage, and lodging (not meals). Don't
overlook this one.
- Don't forget to report
unemployment compensation as income if you received that.