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TAXES
Savvy strategies to help reduce your taxes
Tax Records
Now’s the time to pay attention to your record keeping if you want to avoid headaches next April. Accurate record keeping will help you sort transactions and deductions you make during the year, which will make tax filing easier. The IRS doesn’t require any specific record keeping system. But you should keep all documents that relate to tax deductions and tax credits you claim, as well as income you earn. At minimum, be sure you keep these documents:
- Bills
- Credit card and cash receipts
- Invoices
- Mileage logs
- Canceled, imaged or substitute checks or any other proof of payment
Taxing Disaster
Forecasters are calling for an active Atlantic hurricane season. Would your important tax documents survive a direct hit? Try these tips to maintain your tax records in the face of a natural disaster.
- Back up your accounting software at least weekly, preferably daily, and store the back up in a safe place away from your place of business
- File and store all past years’ tax records, such as returns and W-2s, in a safe place, like a safe deposit box
- Scan all paper records into an electronic format and stash the USB drive or CD-ROM in a safe place
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