Itemized Tax Deductions AHHHHH
First off, if you wont save a decent amount of money by doing an itemized tax return it’s not worth the time. As a small business owner and actress, it is essential that I record each deductible so I can get my full refund. Doing a little bit at a time throughout the year is key to avoiding that giant headache come tax time.
This is how I do it:
I have a small accordion folder that is labeled for each month. I keep receipts divided by month and have a corresponding excel spread sheet that documents Date, Classification (heath, education, research etc), Item, Place of Purchase (Target, Amazon, etc), and Total. Every few weeks I update my list. I also keep a file on my computer where I save all online receipts.
When tax season rolls around, I gather my W2s and print out my spread sheet and let Ricky, my tax guy, do his thing.
This might be too detailed for you and that’s OK (If you haven’t noticed, organizing is kind of my thing…)
Keep your tax deductions organized by simple having a manilla folder for each month’s tax deductible receipts. On the receipt write a note on the back as to why it is a tax deduction (ie business lunch, office supplies etc). At the end of the year bring your 12 manilla folders to your tax man and let him sort it out. You might have to pay a bit extra but he’ll be happy you upgraded from the shoe box.
**Pro Tip** Only keep documents for actual deductions. (That Starbucks receipt can go in the trash.)