Keeping good records could = more refunds for you!!
Martha Gagliano started their tax preparation business in 1987 and recently retired. I asked her to write a blog for you.
Do you like to get a refund?? The best way is to keep good records.
Businesses: save and catalog all your income and expenses. Keep a detailed mileage log. A comprehensive list of income and expenses is here:
For personal taxes, add up charitable donations of cash and get receipts. Keep a detailed list of any donated goods using our donation log. Take a couple of pictures, get a receipt and put the date on it. Attach all together and you have evidence of your donation for a deduction. Even if you don’t itemize you could still benefit from your donation in your state. In Colorado taxpayers can take any donations cash and goods over $500 against their state taxable income.
Medical: Any amount currently above 7.5% of your AGI is deductible for medical. If you do qualify to take the medical deduction, be sure to include EVERYTHING! Any cost you pay out of a pre-tax plan or health and/or dental insurance taken out of your check pre-tax doesn’t qualify. But co-pays and any other out-of-pocket expenses do. Total all out-of-pocket expenses for your doctor, dentist, eye doctor, hearing aids, chiropractic, acupuncture, prescriptions, labs, non pre-taxed health and dental insurance premiums, etc. Don’t forget to include your medical mileage!
Always keep good records! You could be thinking this is too time-consuming?? You’d be surprised at how much money gets into your pocket. Most people think it’s a pain to take time to organize records but the rewards are worth it. I always say doing something hard or tedious is just like eating a bear — take one bite at a time 🙂
Martha Gagliano – Income Tax Preparation Specialist
There is a list of what’s deductible on our website www.gaglianoassociates.com under the quick links section.