Keep Complete Records to Reduce Stress From Your IRS Income Tax Return
If you are among the millions of Americans who filed an IRS income tax return extension, it's time to start thinking about tax returns again.
If you own a business, your corporate returns are due September 15; your personal tax return is due October 15.
If those dates fall on a weekend, your returns are due the following Monday.
This is an ideal time for you to begin organizing your tax records for next year--if you haven't already.
This will help you file or efile your taxes on April 15 next year--which can be highly beneficial if you are due a refund.
The following are suggestions from the IRS about your tax record keeping: 1.
Keep any documents that may have an impact on your IRS tax return.
One idea is to create a folder or big envelope for each month and just drop all banking records, tax documents and receipts into it as you get them 2.
Taxpayers should keep the following records for at least three years: Old, completed tax return forms Paid bills Credit card and other receipts Invoices Mileage logs, if you itemize your Canceled, imaged or substitute checks or any other proof of payment Any other records to support what you claim on your IRS forms Keep records relating to property until at least three years after you sell the property.
Records may include: Home purchase documents Bills paid for home improvement Rental property records 3.
If you are a small business owner, keep all your IRS forms and employment tax records for at least four years after the tax is due or is paid, whichever is later.
Documents business owners should keep are: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC, if applicable Proof of purchases: Canceled checks, cash register tape receipts, debit and credit card sales slips and invoices.
Expenses: Canceled checks, statements, debit and credit card sales slips, invoices and petty cash slips for small cash purchases.
Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks.
If you have any questions about filing your tax return, just go to the IRS website.
Google it.
You can find the answers to many of your questions right there, 24/7.
Some of what is offered on the site are: Finding out if you qualify for an Earned Income Tax Credit, for those who work but don't make much money; checking the status of your refund; downloading IRS tax forms and many other resources.
Spend just a few moments each month to sort your receipts and file correctly and tax time will be so much easier.
If you own a business, your corporate returns are due September 15; your personal tax return is due October 15.
If those dates fall on a weekend, your returns are due the following Monday.
This is an ideal time for you to begin organizing your tax records for next year--if you haven't already.
This will help you file or efile your taxes on April 15 next year--which can be highly beneficial if you are due a refund.
The following are suggestions from the IRS about your tax record keeping: 1.
Keep any documents that may have an impact on your IRS tax return.
One idea is to create a folder or big envelope for each month and just drop all banking records, tax documents and receipts into it as you get them 2.
Taxpayers should keep the following records for at least three years: Old, completed tax return forms Paid bills Credit card and other receipts Invoices Mileage logs, if you itemize your Canceled, imaged or substitute checks or any other proof of payment Any other records to support what you claim on your IRS forms Keep records relating to property until at least three years after you sell the property.
Records may include: Home purchase documents Bills paid for home improvement Rental property records 3.
If you are a small business owner, keep all your IRS forms and employment tax records for at least four years after the tax is due or is paid, whichever is later.
Documents business owners should keep are: Cash register tapes, bank deposit slips, receipt books, invoices, credit card charge slips and Forms 1099-MISC, if applicable Proof of purchases: Canceled checks, cash register tape receipts, debit and credit card sales slips and invoices.
Expenses: Canceled checks, statements, debit and credit card sales slips, invoices and petty cash slips for small cash purchases.
Documents to verify your assets: Purchase and sales invoices, real estate closing statements and canceled checks.
If you have any questions about filing your tax return, just go to the IRS website.
Google it.
You can find the answers to many of your questions right there, 24/7.
Some of what is offered on the site are: Finding out if you qualify for an Earned Income Tax Credit, for those who work but don't make much money; checking the status of your refund; downloading IRS tax forms and many other resources.
Spend just a few moments each month to sort your receipts and file correctly and tax time will be so much easier.
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