With a huge pile of paperwork to sift through during the tax season, keep an eye out for your year-end credit card statement.
This statement is not only going to help you keep a handle on all your spending in the near future, but it is also going to help you reduce your tax-workload and uncover some deductible expenses that you might have overlooked. Here are ways you can make the most of your credit card year end summary for taxes.
Finding Tax-Deductible Expenses
If you are using a single credit card, your year-end statement always categorizes each and every spending, which is more efficient and saves time.
However, many people use debit cards and checkbooks to pay their bills and even their credit card spending are scattered across multiple accounts. In this case, no single year-end statement will help find tax-deductible expenses.
Tracking Business Expenses
Year-end statements are very helpful for small-business owners and self-employed, if they have been organized throughout the year. Using a single card exclusively for business is a superb option, as this makes the task with your credit card year end summary for taxes easier.
The year-end statement does your work, by dividing your spending into different categories.
Monitoring Your Spending Year-round
If you are not really good at self-discipline and the year-end statement holds any surprises for you, this may be the perfect time for you to set up a system for tracking your spending on an ongoing basis. This may also help you in planning your budget for the next year,
Tax Help MD
Stressed about sifting through your pile of paperwork and can’t decide how to go about your credit card year end summary for taxes? No need to stress anymore. Call our tax experts at Tax Help MD on 888-632-4506 and let us take care of your tax-related stress.