To maximize your tax refund, you must begin on January 1. Work all year long toward that refund by taking a couple of simple steps on a regular basis. Filing in January really speeds up the time it takes for a return to come back. People rarely file right after the year starts, but when they do; their return comes in about 10 days.
With free online taxes being filed, it‘s so streamlined now. The first thing a prudent tax payer should do is set up a large bag, positioning it somewhere that’s easy to get to, but put away enough so people don’t see it. Like a paper grocery bag sitting near the telephone station, just there to be easily reached.
Into that bag should go receipts for everything; gasoline, purchases for work, supplies and clothing for work, car mileage, public transportation fares, and so much more. Just drop them in the bag so all the receipts gathered over the year are together. The tax payer maximizes the refund here by taking every deduction that’s legal to take.
Including a car that’s driven only to perform the duties of the job, then its price, maintenance, tires, and gas are all deductible, so save receipts of those, too. Keep detailed notes on mileage and where each trip went and what for.
Keep track of contributions made all year. Besides charitable contributions, record any money given to a church (use checks), even the tithe. Other donations are also deductible such as used clothing, goods and a car (whether it runs or not).
With diligent recordkeeping a tax payer or business can get the maximum refund possible.