Want to pay less tax? Keep these receipts during the year.

Want to know how to pay less taxes? One of the easiest ways to reduce one’s tax liability is by keeping receipts for taxes. While not everything is tax-deductible, saving receipts for taxes is pretty easy and will help you keep good track of your deductions without doing any work! So, what is the best way to store receipts for taxes? I suggest (for the incredibly frugal, like myself) getting a big shoe box, or perhaps, a box that boots came in so there is plenty of room for a year’s worth of receipts. Now, be sure the box is empty and tape it closed. Don’t do a light tape job. Tape it up well. You don’t to to risk opening it and closing it and possibly losing some important tax documents. Now, cut a small slit for receipts, size of a credit card would be good, and another longer slit about the size of half a sheet of paper. See image at the bottom of the post. (The hatch marks are crude slits in the box! :))

List of tax beneficial items (receipts to save for taxes):

Medical receipts 
Basically anything not cosmetic is deductible. Sorry, folks, no plastic surgery deduction unless it’s the result of a horrible accident. Let’s hope that’s not the case. I found this surprising: an abortion is deductible. No joke. I learned that while studying for my special enrollment exams.

Copays 
Regular doctor, Med check, CVS Minute clinic, Wal-mart Eye Center even! Keep them all!

Prescription medicine receipts 
Wad it up, pocket it, and when you get home, put it in the box. Your tax preparer can sort out the dirty details. That’s why you’re paying them so much! 🙂

OTC Drugs receipts 
Just because you don’t have to go through a doctor to get your Extenze anymore doesn’t mean it’s not deductible! As a rule of thumb, I keep all my drug store receipts because I normally don’t go there unless it’s to fill a script. So just keep them all and you can be save to capture all those deductions!

Taxes on personal items 
You know that amount you pay yearly for that tiny sticker that no one cares about except that cop riding your end? That’s a tax deduction. Put that receipt from the BMV into the box!

Donations/Tithing 
Guys, I know it’s hard to keep track of this stuff. You don’t have to now. Just keep the paper long enough to put it in the tax box. Seriously, that money you have to Hurricane Katrina or Sandy Hook, etc. Those are deductions if made to a qualifying organization. That extra money you gave to the low cost spay/neuter clinic? Totally deductible. Go to church (OF ANY RELIGION)? Any and all donations are deductible.

Any and All financial papers relating to the purchase of an asset (home, stocks, farm, land, etc.)
If you buy something big, keep all paperwork and anything with numbers on it, shove into the box.

Work expenses 
Did you have to go out and buy new work boots or carharts for work? Did your boss pay you back? No? Then that, too, is deductible. Lunch is not, don’t get silly on me.

TAX PREP FEES, YO! 
Put that tax prep receipt in the tax box! Safety deposit box receipts-

Investment Expenses up to earning 
Sounds more complicated than it is. Just put it all in the tax box and let your tax preparer to do the work.

Loads of things can be tax deductible and saving receipts for taxes can really help you with your finances. If you don’t know, call your tax professional and ask. Any credible tax professional should be able to answer all your basic tax queries honestly, accurately and happily. Learning how to pay less taxes the right way is beneficial. For more information, call (866) 357-2052.

 

This is a Tax Box for Reciepts.

This is a Tax Box for Reciepts.


Posted: May 8, 2014

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