One of the hassles experienced by taxpayers during tax season is collecting information and paper works for their returns. The scene of trying to find several receipts, searching for that particular page from last year’s returns, or looking for that certain document may seem familiar to most of you. That’s why, even if it’s just the year-end, we’re already here to give you some reminders of what documents you should save.

Here are some of them:

• Statements Mailed to You in January And February

Most of the documents you need to document income and withheld taxes arrive in January to February either on your mailbox or online accounts. These are usually the 1099s and the W2s. It is also a good idea to create a separate email tax folder for messages related to tax information you might receive from banks and other financial institutions.

• Paperless Records

Most transactions are now paperless, especially now after the pandemic happened and everyone is encouraged to go contactless. Your online statements contain records for all your potential deductions so it is a good idea to organize and keep track of all these statements. Often times we think that since it is online, everything should be good as is, but it will actually save you more time if you take a few minutes starting now to organize these and jot down the tax-related information they have like expense title, check numbers, payee names, amounts, and dates.

You can create a simple spreadsheet for these records.

• Other Possible Deductions Throughout the Year

Every log or document related to your business should be kept whether you are sure that you will use it or not. Some overlooked documents like these are mileage logs, parking or taxi fares, tolls, and cash receipts of any other deductible activities.

It’s also a good idea to keep a digital copy of all the physical documents or receipts for back-up purposes.

• Life Experiences That Affects Your Taxes

Sometimes we are too caught up with business transactions that we may forget that some personal life experiences can also greatly affect our taxes. Some examples of life events that can affect taxes are marriage, adoption, divorce, having a newborn, or even buying a house or doing some home improvements. Some of these present tax-saving opportunities that you need to take advantage of so be sure to keep all necessary paperwork to back-up your deduction claims.

When it comes to tax documentation, it is better to have too much information than not enough. You can always pick out those you need from the pile rather than frantically searching from every nook of your house for a paper you badly need.

If you need help with your taxes, FAS is here with you. We have an Enrolled Agent that can help you prepare for your taxes next year. Contact us today by emailing admin@fas-accountingsolutions.com or calling 713-855-8035.