OCR Text |
Show Records for your deductions a statement from the recipient. In-kind In-kind contributions exceeding $500 will have to be reported on a separate form to attach to your tax return. Now, some places to be sure you don't miss in collecting your records. Check your paycheck stubs for deductible items such as health insurance and donations. (Remember (Re-member that United Way Donation you signed up for through payroll deduction.) Something else that may appear on your check stub is union dues and deductions for uniforms and tools purchases through your employer. Something else to remember is mileage for charitable organizations and for medical purposes. Each could add to your deductions. Save these records with your tax return to be the support you will need if you are audited. If you have them handy now it will save you having to dig them out again later. Questions about what may and may not be deductible? Go back to your checklist from your accountant, or call and ask. It could save you a lot of time later and maybe even some taxes. By KENNETH J. ROSE Business Counselor Rose & Associates Last week we took a look at some of the income records to expect in getting your taxes ready, either to take to your accountant or to do yourself. This week let's look at some of the itemized deductions and the records you will need to verify them. Most of your records for itemized deductions will be your cancelled checks. Summarize these and divide them into the different deduction categories. Your bank will send you a Form 1098 or equivalent to substantiate the interest expense paid to them. Interest on your home mortgage is fully deductible, but interest for other personal loans is only 20 percent per-cent deductible for 1989. The mortgage statement should also tell you how much was paid in property taxes on your home. Again, if you haven't received a statement from the bank, contact them and get one. Some banks won't send statements unless you request them. Income tax information paid to the state will also be on your W-2's, which you should already have. If you paid any extra income taxes to the state, remember to add this to the amounts on your W-2's. Besides your home mortgage the biggest deductions for taxpayers in Utah are charitable contributions. Again, a cancelled check is the best record to support this deduction. If you donated any property as an in-kind contribution you should get |