Millions of Americans are sifting through piles of receipts and paperwork preparing for the tax deadline. And unfortunately, owing Uncle Sam or getting a refund could come down to one factor – deductions. While there is still time to search for those little jewels before April 15, don’t forget to take the time now to get ready for 2005.An online budgeting system such as Mvelopes® Personal can help organize everything from tax deductions to the household budget and expenses. Specifically, Mvelopes allows you to create a spending plan with dynamic accounts that provide daily, up-to-date balance information for each category. While its main function is to help people manage their spending proactively, it also serves as an excellent tracking system for tax deductions, hopefully getting you the largest refund at tax time.
If you are unsure what is or isn’t deductible, visit the IRS’ Web site (www.irs.gov). To get you started, here’s a list of some of the most overlooked deductions:
- Small Business Owners – Did you know that if you are working from home or self-employed, a percentage of your utilities, phone and wireless bills could be deductible? Create spending envelopes for each category to track each month’s expenditures for ease come tax time.
- Retirement contributions can significantly reduce the amount you owe, especially if you are self-employed. In addition, investment expenses such as brokerage fees and investment publications are deductible. Using an investment tracking system like MportfolioT helps you see the big picture-all from one summary page. It can be customized to access and track all of your investment accounts.
- Donate old clothes, furniture, even cars to non-profit organizations. Since it’s easy to forget about these donations, create a charitable contributions folder in your budgeting system detailing donation amounts, and file hard-copy receipts in a paper envelope. FYI: Your deduction is based on fair market value.
Based in Draper, Utah, In2M Corporation is a financial software and services company and developer of Mvelopes® Personal. An online budgeting system, Mvelopes Personal is quickly becoming one of the hottest budgeting Web applications on the market. In2M has successfully marketed this budgeting service in all 50 states and in seven countries worldwide. Thousands of users are praising its capabilities for helping them achieve financial freedom.