| Every year American companies lose millions of | | | | have the most complete version of tax help that |
| dollars in productivity to employees who end up | | | | the desktop software does. There can also be |
| taking personal time off to do their taxes. | | | | additional costs of state filing services, sometimes |
| Whether you are filing by paper from just one | | | | at more expense than the federal counterparts. A |
| W-2 or running multiple enterprises, streamlining | | | | recent PC Magazine rated the top three Tax Web |
| now will payoff this year and in future. | | | | Sites as: TurboTax (*****), TaxCut and |
| Applying these proven Tax Time Tune-Up tips will | | | | Complete Tax (both ****). |
| save you time, frustration and could even save | | | | Make a file tray marked Tax Stuff every |
| you money. Even if you only reduce your stress | | | | January. While sorting your mail put all 1099's, |
| level — it’s worth it! Start today by | | | | W-2's, and any tax-related material into it. You |
| getting an archive box or file crate to hold all your | | | | can also put colored accordion file pocket folders |
| 2004 tax related files and forms. | | | | in your tax box’ for incoming tax |
| If you have a good filing system, but you keep | | | | documentation. |
| getting bogged down in old records: Every | | | | Use your credit cards to simplify your accounting. |
| January, pull last year’s financial files, any | | | | Select which cards you will use for business, |
| business related expenses, proof of income and all | | | | travel or expensed transactions, household, |
| tax related items. While you are taking 2004 files | | | | personal, and use only one card for all your |
| out, make the replacement 2005 file folders for all | | | | internet transactions. Label your cards until the |
| of your regular home and business or personal | | | | usage becomes second nature to you. |
| financial and legal documents. | | | | Credit card buyer-protection programs are useful |
| If you have no functioning filing system for your | | | | in a merchandise or service dispute. Keeping only |
| home (or business) I recommend you sort out | | | | one credit card number exposed to the web limits |
| your papers for 2004 tax and archives after | | | | your exposure to fraud. I use three cards only: |
| setting up the FileSolutions TM color-coded | | | | business, personal, and web. |
| pre-printed file kit for 2005 that fits your current | | | | At month end use your credit card statements, |
| filing needs . ( That way you’ll have the | | | | auto/transaction log and checkbook to track |
| right place to put each item as you handle it. I use | | | | expenses for your ledger or computer program |
| the Home and Small Business FileSolutions TM kits | | | | instead of chasing all the receipts. |
| in my own business, which makes it easy for me | | | | Keep a compartment, or envelope in your |
| to guarantee satisfaction. | | | | briefcase where you can easily stuff any receipts |
| Tax Preparation Software: By using tax | | | | or notes. Then, use it. Have a drop box in your |
| preparation software, you can finish your federal | | | | office for the expensable receipts from your |
| and state returns in about 90 minutesif | | | | briefcase or pockets. At home make a place to |
| you’ve completed the steps above. The | | | | put any receipts that refer to warranties or |
| software helps you find deductions, does the | | | | personal property records. |
| math for you and tells you what you owe or | | | | After April 15th, archive all tax-related files |
| what your refund will be. Use tax preparation | | | | separate the previous year from your active files |
| software matched to your situation and financial | | | | into an available (but not daily use) archive box. |
| software; there are several available (TaxCut, | | | | Put in a back-up disk or CD of your accounting |
| TurboTax, etc.). | | | | program for that year along with the data. Also, |
| I use TurboTax (by the makers of Quicken) to | | | | put your calendar and a carbon copy phone |
| do my own taxes. If I can do it — so can | | | | message book in the tax archive box — |
| you! Then, I have a tax professional check my | | | | it’s all proof of business use. |
| return for way less money than it would have | | | | Place prior records into garage or closet storage. |
| cost me to have my business and personal taxes | | | | Mark each box on the outside by tax year and |
| done by a tax professional. | | | | put all related tax backup documentation into it. |
| Good News/Bad News: If your Adjusted Gross | | | | Include a copy of the tax return itself, as well as |
| Income for 2004 is less than $28,000, or you | | | | any 1099s, W-2s etc. |
| qualify for Earned Income Tax Credit — go | | | | Keep a transaction log for auto mileage and |
| to and use Intuit’s TurboTax program | | | | miscellaneous transactions. You must have a log |
| online for FREE! | | | | to deduct auto expenses, and when you maintain |
| Online tax-preparation sites keep improving their | | | | a transaction log the IRS does not require that |
| do-it-yourself tax tools, ease of preparation and | | | | you keep receipts for expenses under $75.00. |
| regular or e-filing expertise. These offer the same | | | | This documentation goes into your tax |
| process as desktop software does but, it is all | | | | box’ which becomes your tax archive |
| done online. After the products sift through your | | | | box’. |
| return for errors (and suggest tax-saving | | | | You can set up your Personal Digital Assistant |
| strategies), you can print your completed return | | | | (e.g., PalmPilot) to use an Expenses Notes section |
| or file it electronically. | | | | to easily maintain your daily business expenses. |
| The IRS likes electronically filed returns so much, | | | | Save yourself money and stress by using these |
| in fact, that it's set up specific developers that | | | | tips to get a jumpstart on 2004 taxes. Tune-up |
| provide free prep and filing to certain demographic | | | | your own file system, or if you don’t have |
| groups. Go to to see if you qualify. | | | | one, use the cost-effective FileSolutions TM file |
| Some tax-preparation web sites are cheaper than | | | | kits. |
| their desktop counterparts. But they don't always | | | | |