Tax Prep Tip: Auto License Fee

preparing taxesHere’s another tip to help you save time getting your tax information together for the Tax Preparer!

If you use money management software like Quicken, most of us record the annual check we write to the Department of Motor Vehicles to a category like “Auto:Registration”. As you make the entry, take the time to enter on the Memo line the amount that is tax deductible. You will find this identified on your bill. Now as you prepare your Tax Organizer worksheets for your Tax Preparer, the amount will show on your Quicken reports and you’ll have the amount at your fingertips. 

If you even want to get more detailed, you can create a separate sub-category for this amount. Certainly not necessary but does quickly let you see it on reports! We do this when managing the daily finances for our clients but this is what we do for a living.

Note: Be sure to save the actual bill in a file for current year taxes. Most Tax Preparer’s want to see the paper statement too!

Have a question about managing your daily financial world? Don’t hesitate to ask!

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