Keeping Track of Your Tax Write-Offs

 

This stress can be totally avoided with a little organization and routine. There are so many different things that can be considered a tax write-off when you are working from home since almost everything around you can be used for work. Everything from your cable and internet down to your cell phone bill and car mileage. Anything that you do or use that you can tie to work has the strong possibility of being a tax write-off. Develop a routine that you can easily use all year long to keep track of all your expenses for work if you plan on getting a chunk back for what you've been spending. Yes, you can still claim all your write-offs if you don't have proof, but if you are flagged for an audit, it is solely up to you to prove your claims to the government. This can be a very scary thing.

 

There are many different routs you can take to get yourself organized. Consider starting with a filing cabinet. You don't have to go all out and get yourself a brand new one. Try and save yourself some money and look around at garage sales or used office supply stores. Pick up some dividers and label all the tabs. Make sure to separate normal household receipts and items from your work. This will help you remember what is what. For me it is also helpful to have them organized by month. It keeps everything in chronological order so materials are even easier to find.

 

Receipts are also very important to keep a hold of. I hate doing it because they are small and get bulky fast. Still, have a specific spot to keep all of them. You need a spot in your purse that you keep them so they don't get lost and you can account for everything when you get home. I try to organize them the best that I can in the filing cabinet and sometimes end up just using manila folders. Receipts that I can group together for the month like receipts for the gas station and groceries all go into their own special spot and I suggest that you do the same for easier finding. If you find yourself stuffing all into one large manila envelope for the month, going through them at the end of the year for itemization will be much more time consuming and stressful.

 

This routine may not work for everyone but find what will work for you. Just keep in mind that the more organized you are through the year the easier your taxes are going to be when it comes time to breaking it all down. Don't make claims for write-offs that you can't provide tangible proof for. Your tax accountant can't do anything for you on that level if you don't have proof in your hand.