One thing I love to do is help people gain financial success. The holidays are here and people are shopping away, believe me I know!!! (I don't even celebrate Christmas but I am surely enjoying the shopping experience). But a lot people always say "Berenice, why didn't you tell me about this or that before?!?". So as this upcoming tax season draws closer, I am going to provide you some tools to help you get the refund you deserve.
First step is to be sure you have kept all of your receipts and records for anything you will be claiming an exemption or deduction for. I usually provide this checklist to my clients:
-W2(s)
-1009-Misc (other income)
-1099-INT (Bank Interest Stmt)
-1098-E (student interest stmt)
-1098-T (tuition stmt)
-Tithe/Offering receipt
-Volunteer expenses log (churches & nonprofit organizations)
-Unreimbursed job expenses (uniforms, etc.)
-Professional Dues and Subscriptions
-Major purchases receipts (car, equipment, home upgrades, etc.)
-Moving expenses receipts
-W2(s)
-1009-Misc (other income)
-1099-INT (Bank Interest Stmt)
-1098-E (student interest stmt)
-1098-T (tuition stmt)
-Tithe/Offering receipt
-Volunteer expenses log (churches & nonprofit organizations)
-Unreimbursed job expenses (uniforms, etc.)
-Professional Dues and Subscriptions
-Major purchases receipts (car, equipment, home upgrades, etc.)
-Moving expenses receipts
Second step is to research what deductions you may qualify for. For example: most people that I know are involved with a non profit organization in some way shape or form and don't know that their of your out of pocket expenses are deductible. Here are deductible expenses:
- the cost of hosting a party or fundraiser for the organization
- advertising that you buy on behalf of the organization
- supplies you purchase to be used in volunteer work, such as stamps and stationery
- the cost of a required uniform (and the cost of keeping it clean), and
- telephone expenses.
Third step find a qualified tax accountant to do your taxes. It seems cheaper to do them yourself, I know all about cheap. But you could be missing out on a higher refund because you don't know tax law and what you could be entitled to. Tax professionals are constantly on top of new tax laws and even after paying them you could still get a higher refund.
Last step is to try and save your refund. One of my new goals is to encourage saving to everyone I come in contact with more info can be found on my Money Challenge blog . Don't depend on your tax refund to pay your monthly bills but watch your savings grow each year by putting your refund away. This can allow for that vacation you can never afford or that new car you've been dying to drive.
I hope this has helped you to get ready for tax season and should you have any questions please let me know. Stayed tuned this tax season for Ask the Auditor segment.
Ready B*B*J*B
Ready B*B*J*B
