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Some tax-preparation web sites are cheaper than their desktop counterparts. But they don't always have
most complete version of tax help that
desktop software does. There can also be additional costs of state filing services, sometimes at more expense than
federal counterparts. A recent PC Magazine rated
top three Tax Web Sites as: TurboTax (*****), TaxCut and Complete Tax (both ****).
Make a file tray marked Tax Stuff every January. While sorting your mail put all 1099's, W-2's, and any tax-related material into it. You can also put colored accordion file pocket folders in your ‘tax box’ for incoming tax documentation. Use your credit cards to simplify your accounting. Select which cards you will use for business, travel or expensed transactions, household, personal, and use only one card for all your internet transactions. Label your cards until
usage becomes second nature to you.
Credit card buyer-protection programs are useful in a merchandise or service dispute. Keeping only one credit card number exposed to
web limits your exposure to fraud. I use three cards only: business, personal, and web.
At month end use your credit card statements, auto/transaction log and checkbook to track expenses for your ledger or computer program instead of chasing all
receipts.
Keep a compartment, or envelope in your briefcase where you can easily stuff any receipts or notes. Then, use it. Have a drop box in your office for
expensable receipts from your briefcase or pockets. At home make a place to put any receipts that refer to warranties or personal property records.
After April 15th, archive all tax-related files separate
previous year from your active files into an available (but not daily use) archive box. Put in a back-up disk or CD of your accounting program for that year along with
data. Also, put your calendar and a carbon copy phone message book in
tax archive box – it’s all proof of business use.
Place prior records into garage or closet storage. Mark each box on
outside by tax year and put all related tax backup documentation into it. Include a copy of
tax return itself, as well as any 1099s, W-2s etc.
Keep a transaction log for auto mileage and miscellaneous transactions. You must have a log to deduct auto expenses, and when you maintain a transaction log
IRS does not require that you keep receipts for expenses under $75.00. This documentation goes into your ‘tax box’ which becomes your ‘tax archive box’.
You can set up your Personal Digital Assistant (e.g., PalmPilot) to use an Expenses Notes section to easily maintain your daily business expenses.
Save yourself money and stress by using these tips to get a jumpstart on 2004 taxes. Tune-up your own file system, or if you don’t have one, use
cost-effective FileSolutions TM file kits.
Or you can go all
way with new electronic preparation and filing to make sure this year is better than last April 15!

Since 1988, Eve Abbott has organized executives and business owners so they can work at least 25% more effectively. Her book is How to Do Space Age Work with a Stone Age Brain™ (2004). She has degrees in Sociology & Psychology from the University of California and a Lifetime Adult Teaching Credential. The Organizer Extraordinaire appears in New York Times, Working Woman and Home Office Computing articles. Contact Eve: www.organize.com