THREE TIPS FOR TAX SEASON
Whether you own a small business or just manage a household, filing your taxes can be a frustrating task with serious consequences if you make a mistake: delayed refunds, penalties, and even more paperwork. Luckily, using NumReceipt for receipt management and income tracking can make the job a little easier. Read on to find out how, and maybe discover a few tax tips you hadn’t considered before!
1.DEDUCT CHARITABLE CONTRIBUTIONS
Donations to qualified organisations may be deducted from your tax bill - so long as you have a receipt! Easily keep records of your charitable donations throughout the year by using NumReceipt to scan paper receipts and upload mobile receipts to the app. You can return later to print them out if necessary.
If you plan to deduct charitable contributions, keep in mind that donations to political organisations and candidates for office do not qualify, and donations of non-cash goods like clothing should be valued at the approximate price at which they would change hands between a reasonable buyer and seller. You can find additional advice on this topic on the IRS website.
2.KEEP TRACK OF ALL YOUR INCOME SOURCES
While some individuals may be able to report the income they earned at work and call it a day, most of us also receive money from other sources throughout the year. If you collected funds from scholarships, investment accounts, unemployment, or Social Security, among others you must say so on your tax return.
The NumReceipt app is a great place to separate income into categories. For example, if I earned $5 in interest from my checking account, I could save the details and return to them at tax season by navigating to ‘Income’ from the NumReceipt app home screen and then populating the relevant fields.
3.KEEP BUSINESS AND PERSONAL EXPENSES SEPARATE
Did you know that even if you are not self-employed, you may be able to subtract certain business expenses from your tax bill? According to a recent TurboTax article, examples of these items (as long as you meet certain criteria) might include dues for professional society memberships and uniforms that consist of clothes not appropriate for everyday wear.
NumReceipt provides an option to categorise receipts as business-related, as shown below. You may also adjust the Account Type from Personal to Business when entering receipts, although this feature is not available to Free users. Taking a minute to manage expenses each day could save you hours of headache down the road.
We wish you a smooth and simple tax season!