Tax Tip Tuesday: Keep good records

Tax Tip #4: Keep a record of all income & expenses

YUMA, Ariz. (KYMA) - Just as important as weeding through tax preparers to find the right professional, it would behoove taxpayers to hold themselves accountable as well.

That means keeping an accurate record of all income throughout the year.

Whether that be an excel spreadsheet or a notebook where you track everything on paper; it’s your job as the taxpayer to report all of your income.

IRS Special Agent Brian Watson said, “Ultimately you are providing information to the return preparer. If it’s a W-2 form for the wages for the company you work for or the entity it’s pretty straight forward. But some people have home-based businesses, they get paid in cash, or have a different way of accounting for their money."

Taxpayers should be honest with preparers about their income.

For those of you who are self-employed, Watson says to keep track of your expenses.

You may be able to deduct expenses like gas, travel, and repairs.

Watson advises keeping good records will lower the amount of taxes you’ll pay at the end of the year.