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TAX PLANNING 

TAX PLANNING
TAX RECORDS

RESULTS

 8 Great Practical Tax Planning Tips:

  1. Keep records for at least 3 years in case of an IRS tax audit. EFILE TAX TIP: For your own peace of mind you might want to keep them longer. Start a file folder at the beginning of each year, and put all of your receipts into it.
  2. Check your pay stubs against your W-2 to make sure they add up. Even employers can make mistakes!
  3. Study last year's tax return. Are there any credits and deductions which you are you still qualified to take? Are there any you did not take, but for which you now qualify?
  4. Deduct the cost of last year's tax preparation. Next year you will deduct any fees paid for the preparation of this year's tax return. Also deduct the cost of any tax-related consultations, seminars, books, or newsletters, etc.
  5. Donate to charity! The IRS only requires receipts for charitable contributions of $250 or more, but it's a good idea to keep receipts for any donation.
  6. Make long-term investments. Short-term investments are taxed normally, but those held for over a year are taxed at only 15%.
  7. If you have planned your taxes successfully enough to receive a tax rebate, you should invest it in an Educational Savings Account, an IRA, or a savings account at your bank. Use the money to start preparing for next year's taxes.
  8. You don't have to take the standard tax deduction. Use our TAX CALCULATOR to itemize your deductions, then see whether the resulting amount is higher than the standard deduction available to you. Choose the higher amount!

Tax Deductions 2017 Write -Offs

 

  1. Standard Tax Dedutions-Married $12600 Head of Household $9300

  2. Mortagage Insurance Premiums Dedctions

  3. Tuitions and Fees Deduction' HIger education

  4. Cash Donations / NonCash Also

  5. Volunteer-Work Donations

  6. Student Loan Intrest Deduction

  7. Job Search

  8. Moving Expenses

  9. Military Reservist Travel Expenses

  10. Tax Preparation Fees

  11. Home Renovation-Medical

  12. Educational Expenses American Opportunity

  13. Home Appraisal Fees

  14. Hobby Expenses

  15. Investment Fees and Counseling

  16. IRA Losses

  17. Legal Fees

  18. Health Savings Account

  19. IRA Contributions

  20. 401k Contributions

  21. Senior Tax Deduction

  22. Home Sale-$250k- $500

  23. Bad Debt Deduction

 

 

 

Keep Tax Records!

 

Which records? Well, the IRS recommends that you keep all tax-related records for 3 years in case of an audit. But some old tax documents, such as last year's W-2's, can come in handy when you are filling out your tax return this year.

Here are some examples of tax-related documents to you might want to keep:

 

  1. W-2 forms

  2. Pay stubs for the year

  3. Mortgage payment stubs and/or home purchase closing statement

  4. Last year's tax return (for quick reference and comparison)

  5. Receipts from anything you might claim as an itemized deduction

  6. Receipts from any charity (e.g. for church tithes, disaster relief donations, etc.)

  7. Car mileage log (in case of business use)

  8. Any receipts for business travel expenses

  9. Canceled checks (especially for IRA contributions and other deductions)

  10. Credit card statements and bank statements (to verify any deductions)

  11. Medical bills (especially if they exceed 7.5% of your income)

  12. 1090G form (for deducting state or local income taxes)

  13. 1090 forms (from any dividends or other income paid to you)

  14. Mobile phone bills (especially if you made charitable donations by text message)

 

 

 

Keeping very good records will result in a great return, which allows your return to have transparency with the IRS.

 

TIP: To make your mountain of documents easier to store, try scanning them and keeping them as PDF files. This way you can print them out if you need them. If you do this, remember to back up your computer!

For more information about tax recordkeeping, consult IRS Publication 552 - Recordkeeping for Individuals.

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