Tax time can be stressful for many Rhode Island taxpayers, but it doesn't have to be! Staying organized throughout the year helps so much when tax time rolls around. Just a few minutes a month could save hours when it's time to file your income tax returns.
Most Rhode Island taxpayers that earn wages and receive W2's at the end of the tax year generally have less record-keeping to do overall. We suggest at the very least keeping receipts for charitable contributions, out-of-pocket medical and dental expenses, log books with medical and dental expense related mileage in a clearly labeled envelope in a place you can easily find it when you need it for your accountant or tax preparer. These receipts may add up to a big tax deduction at the end of the year!
Taxpayers that earn wages through gigs or as an independent contractor will have additional records to keep. Expenses related to your wages must be recorded and deducted on your income tax return to reduce your tax liability. Depending on the size of your business, you may want to keep a separate envelope or file for each month instead of one for the whole year. If you have more than one gig or business, it's important to keep expenses separated for each business. Calculating income and expenses each month will help you spot trends and understand how profitable your business is.
Of course, some taxpayers really dislike paperwork and would prefer someone else to keep their records organized - and that's OK! There will be a cost associated with the service, but the peace of mind it creates will be worth it. We are more than happy to help keep you organized throughout the year - we can meet monthly or quarterly to help review and organize your receipts and logs and make suggestions on how to maximize any potential tax deductions.
Kent County Tax Pros
KentCountyTaxPros@gmail.com
Call/Text 401-889-3668
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