When the New Year rolls around people start thinking about getting started on preparing their taxes. New online filing, great tax preparation programs and in person or online support has really made this much less stressful than it has been in the past. However, regardless of the method you are going to use to file, it is important to get started early in collecting, sorting and categorizing your information. This includes double checking all information for accuracy before getting started. A great idea that can be used year round is to set up a filing system that allows you immediately file receipts, documents, and tax forms as they arrive. This system can be as simple as a set of file folders with each labeled with the specific category of receipts or documents that are contained inside. The basics include charitable contributions, vehicle expenses, tax deductible purchases, income statements, travel expenses for work or employment and, if you are self-employed, files for business expenses, income and purchases. Another way to contain all the information is using a computer program, which can be a basic accounting type of program or a simple spreadsheet that you develop yourself. Both can be easy options
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