In January, I wrote that tax time was my 37^th favorite time of year; I’ve now sent it towards the bottom of the list to number 44, just above a tonsillectomy and below a trip to the dentist.   All joking aside, people dislike tax time for a variety of reasons; for many it stems from a lack of organization.

The great people at Avery via The Motley Fool have a selection of tips to help organize yourself and avoid overpaying.  “According to the General Accounting Office, the average taxpayer overpays the IRS hundreds of dollars every year by overlooking deductions and missing chances to itemize -- opportunities that get buried in the forest of W-2s, 1099s, and quarterly and year-end statements each family generates throughout the year.” ~The Motley Fool

They go on to say that the best time to start a tax filing system is right after completing your taxes while the memory of your lack of organization is fresh.  The simplest approach is to label three file folders with “Income”, “Expenses & Deductions”, and “Investments”.

Income Folder

• Wage and Tax Statements (W-2, 1099, etc)
• Dividends and Interest Statements
• Gambling Winnings
• Other income (Social Security Statements, Investment Income, Jury Duty)

Expenses & Deductions

• Charitable Donations
• Medical Bills
• Mortgage and Property Tax Statements
• Capital Losses
• Business Expenses

Investments

• Deductible/tax deferred investments
• Nondeductible investments
• Taxable Investments

The main point is to review and keep up on your tax related documents about once a month.  Set a quick reminder in Outlook, Google Calendar, or add it to your planner; doing so will keep the anxiety down by keeping an ongoing record.

For more products to organize your records, visit www.buyonlinenow.com.

• Avery Office Supplies at BuyOnlineNow.com
• The Motley Fool

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written by San Diego Office Furniture, March 19, 2010

Good tips for being organized in preparation for tax season. I actually keep two envelopes in my purse at all times. One is labeled business and the other is for regular purchases. That way, any time I'm shopping and buy something I will use for work (even if it's just a few pens and pencils) it goes straight in the envelope. When I make a business purchase online I print out that receipt and put it in the envelope as well. That way I don't forget to take anything off my taxes. It adds up!

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written by Keene Tiedemann, May 14, 2010

Distinguishing between business and private purse money is very important- especially if you account for every penny spent on your business. The IRS can be merciless on a small business owner during an audit so counting every penny is only the first of many things we need to do to protect ourselves.

Depending on company structure, the IRS requires us to separate and isolate our home offices from our personal assets. We can't use our personal computers or telephones. Everything has to be specifically owned and used by the business. Personal safes and file cabinets can't be in the space we define as office space. Co-mingling personal and business resources opens us up to personal legal liabilities and breeches the company veil we want to protect us. It would be terrible to be very productive in our home offices only to lose the house because some lawyer was able to breech the corporate veil!

Here's wishing every small business entrepreneur the greatest success in 2010.

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written by Furniture Packages Spain, May 25, 2010

The term tax relief refers to tax breaks and write-offs that reduce the amount of tax due or otherwise provide concessions for taxpayers. Tax relief can be granted on a local, state, or federal level. In the United States, however, the term is most often used in conjunction with federal taxes.

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