Tax Deduction Checklist - The Fastest Way to Organize Your Taxes

What makes tax time so stressful that a lot of peoplereturn. Looking at last year's return, will enable you to
procrastinate when it comes to taxes? Do you putsee what deductions you took. Then ask yourself
them off until the last minute because you don't wantwhat has changed in your life over the past year and
to know what you owe the IRS? Or, do you put themupdate your checklist accordingly.
off because you're unorganized? Regardless of whyThird: To make sure you've captured all of your
you put them off, I bet you're thinking about them a lot!deductions - check out TurboTax's tax preparation
You may even stay awake at night with visions ofchecklist. Print out this excellent tax preparation
1040's dancing in your head.checklist to help you further identify possible deductions
Why put yourself through all that stress? It's soand information you need to organize and file your
unnecessary. We're going to use a basic tax deductiontaxes. Again, remember to update your checklist with
checklist to get your taxes organized, filed, and off toany additional information you find.
the IRS quickly.Fourth: Once your taxes are done, filed, and off to the
In fact, if you follow these steps, by this time next yearIRS we're going to organize your taxes for next year.
your taxes will already being done! Yes, just imagine,No, I'm not kidding. Why wouldn't you want to simplify
they're in your accountant's hot little hands or you'veyour life now by organizing your income tax records
already completed them yourself at your computer!for next year?
Hip Hip hooray! I hear you cheering right now. So, let'sTo do this, grab that tax deduction checklist you've
get those taxes organized fast.been updating all along and create a central location to
First: The information you'll need for filing your personalcapture all of your income tax records information as
income taxes is based on your individualthey come in throughout the year.
circumstances but, here's a basic tax deductionWhat is a central location? Well, it could be anything
checklist you can use to start with. Don't worry; we'llyou want it to be as long as it's easy to use (readily
supplement it in the following steps to capture anyavailable) and safe and secure (won't get lost,
additional deductions:misplaced, or destroyed by the kids).
- W-2's for you and your spouseA central location can be a simple file labeled
- Social security numbers for you and your"TAXES", a shoe box, an accordion file, and even a
dependentsbread box just as long as you use it and keep your
- If you were an independent contractor and made atchecklist handy. Then as income tax related
least $600 in the prior year, you'll need your 1099documents come in throughout the year, simply check
form(s)them off your tax deduction checklist, and file away in
- All brokerage statements from stocks, mutual fundyour central location. That's it!
accounts, and other investments except IRA's andTo recap, here are the simple steps to organize your
401k'staxes now and for next year:
- Your mortgage interest and property tax statementsFirst - Use the basic tax deduction checklist provided
- The closing statements for real estate bought or soldabove.
- Expenses related to college for you or yourSecond - Supplement this checklist with information
dependent(s)from last year's return.
- Any charitable donations madeThird - Check out TurboTax's extensive tax
- Any child care payments madepreparation checklist and update your tax check list
- Any alimony paid or receivedaccordingly.
- Any union dues and or professional association feesFourth - And, for next year, create a central location to
paidcapture income tax records throughout the year. And,
Second: Okay, as I said before this is a basic taxbe sure to use your personalized tax deduction
deduction checklist. Another great way to organizechecklist to keep track of tax information as you
your taxes while saving time is to look at last year'sreceive it.