Summer is nearly over, the kids are headed back to school and everyone is getting serious about business after the summer of relaxation.
Do you have an annual checklist you should review? My clients often start thinking about their tax situation in February or maybe April. They talk about “tax time”. You will get better results if you think about your tax situation more frequently.
Here are a couple of questions to ask about your personal tax situation during your September review:
- Is my mileage log up to date? You keep a mileage log if you have a company car, if you are deducting vehicle expenses for your business or your employment.
- Do I have a file with my medical and charitable receipts in them? This can be an actual file or a file on computer.
- Do I know if I am going to have enough medical expenses that I am claiming a medical deduction on my personal tax return. If I will be making a claim then maybe it is time to schedule dental work or new glasses. If you have medical expenses that exceed 3% of your net income, you will be able to claim these expenses – so – any additional expenses will also be a deduction. If you have medical expenses that are less than 3% of your net income then you cannot deduct any expenses.
- Do I have receipts for any childcare I paid for over the summer?
Don’t wait until “tax time” to start thinking about these questions.