Facing Tax Day

Don't forget...Tax Day is April 15!

Many people will spend this weekend trying to get everything together to meet the deadline. Tax professionals will be overwhelmed and charge their clients accordingly for expedited returns and extensions. However, by staying organized throughout the year, you can avoid the last minute rush and save yourself some money too.

Consider Using Software
Ideally, having your personal finances in financial software is the easiest way to beat the tax monster. Each tax-related transaction is entered throughout the year and by 12/31 you can run a summary tax report for yourself or your tax professional. Also make sure to keep the associated documentation together (and organized!) throughout the year as well. Some software will even export into tax prep software, bringing you even closer to tax completion nirvana!

Use Tax Checklists
Most tax professionals will provide a checklist of items you will need to pull together before you come to their office. W-2s, 1098s, 1099s, donation statements, medical bills, etc. are all necessary to prepare your return and give you the maximum deductions. If you use the same tax pro each year, they will even tailor your checklist to your exact tax situation and you can round everything up for your preparer by mid-February! Yes, it can be done!

Keep Mileage Logs
You should keep a small notebook in your car to keep track of miles driven for charitable, medical, moving, employment seeking, or business purposes. If you donate your time to a charity on an ongoing basis, keep track of the miles to drive to their location or associated event. Certainly if you are a business person you are familiar with keeping mileage logs for any business-related driving you do. These miles can be deducted as long as you are not also reimbursed for the mileage by your client or if your employer provides your vehicle. For further details on any mileage reimbursement that may apply to you, check with your tax preparer or http://www.irs.gov/

Eliminate the Piles of Paper
If you can think of anything positive about tax season, you might consider it as an opportunity to rid your files of accumulating statements and bills by clipping these together for the year and adding them to your tax document archive after your return is filed.

For example, if one of my clients needs a bank statement for July 2007, I know I can find this item in the box containing their 2007 tax archives. If you have gone paperless, make sure you save a PDF of each statement or bill throughout the year and then transfer it to a flash drive, CD or DVD. If you haven't gone paperless, maybe 2009 is the year to try. It's better for the environment and is certainly less chaotic than dealing with the inevitable accumulation.


If you start with the ideas above, you'll be well on your way to an (almost) effortless tax season. You can concentrate on what's important and your tax pro will love you.