It’s that time again. Time to pay your dues to society’s lowlives.
Okay, maybe not lowlives – SOME of our tax dollars are going to beneficial programs (I think?).
However, unless you are a professional babysitter or a drug dealer, it is impossible to escape the looming debt our country finds itself in.
And since the mundane task of paying taxes is mandatory, I thought I’d share a few tips on deductions and write-offs (I DO work at an accounting firm after all – what kind of blogger would I be if I didn’t help out my readers a bit with FREE tax advice?)
Tip number one – DO NOT UNDER ANY CIRCUMSTANCES USE TURBO TAX. Seriously, pay $50 more and go to H&R Block, or another semi-professional accounting service. Turbo Tax fucks you. I used it for years before I got my job, and realized I was paying money instead of receiving it. I’m pretty sure Turbo Tax is a scam created by the government in order to take money from people who aren’t supposed to be paying (and are, in fact, supposed to be getting PAID). Personal opinion, yes, but my supporting argument is that most of our new clients this year used Turbo Tax last year and had to file an amended return.
Next tip: if you are a business person, save ALL your meal receipts. Cash, credit card, debit card – whichever way you paid for the transaction, keep your receipts handy. If you ever get audited, you will end up having to pay everything back that you said was a business meal and don’t have supporting documents for. On that note, save EVERY receipt, bill, invoice, whatever it may be – EVERYTHING that is business related or was purchased for your business. Again, the audit thing.
Also, save your DMV information. Most of you probably already know this, but I didn’t – you can get deductions for DMV registration payments. So, if you’re rolling in dough and looking for your next big purchase, buy another car!
DONATIONS – MAKE THEM. And keep track of how much you donated. All of that becomes a deduction as well. Goodwill donation, church donations, donations to schools – all of it counts.
Medical expenses can also be a deduction – keep track of those as well. Supporting documents aren’t usually necessary. Most of our clients just give us the amount. Property taxes paid throughout the year, especially if you own multiple properties.
I’m thinking off the top of my head right now, so if I missed anything, feel free to add! Or if you have other questions, feel free to ask!