1. Make sure you get the maximum allowable tax deduction for business use of your car
There are two methods to calculate your auto expenses and you can choose the one that gives you the best results:
actual costs
optional mileage amount (for 2009 it’s .55 per mile)
You can choose differently each year without needing permission from [...]
1. Get a copy of your return from last year.
If you’re like most people, your tax situation doesn’t change much from year to year. So last year’s return is probably full of clues to help you know what paperwork you need to collect for this year.
If your circumstances have changed, make sure to note any differences, e.g. a new baby, a new house, a new car, a new job.
See which forms you received from outside sources last year that provide proof of income and deductible expenses shown on your return. Pay special attention to these:
- 1099-INT
- 1099-DIV
- 1099-MISC
- 1099-B
- 1099-R
- 1099-G
- W-2
- SSA-1099
- K-1
- 1098
If you used these forms last year, Continue reading