To get organized, here is what you will need to do:

· Invest in a accordion file or file cabinet
· Invest in a box of hanging file folders or envelops
· Separate all you receipts, statements, etc. into separate categories, such as:
· Medical
· Job related expenses
· Contributions
· Mortgage

Finally, you develop a filing system that works for you. Most importantly, have one location for all of your past-year taxes. Many people lose them and if an audit comes, they have no records.

NOTE! You should keep a minimal of 3 years of taxes filed away. That is because there is a 3 year statute of limitations on tax audits and assessments.

Some solutions to taxpayers problems would be:

· Start claiming legal deductions
· In all thy getting, get some tax education
· Claim less exemptions on your w4
· Buy a home
· Invest in an IRA
· Make some contributions tithe to your local church
· Hire a tax preparer a person who does taxes for a living.
· Start a business! There are a lot of benefits in doing so.

· If you do not file be April 15, you will have to pay penalties and interest
· If you live or work outside the U.S., you have an automatic extension until June 15
· If you cannot file by April 15, you can get an automatic 4 month extension until August 17

Form 4868 is the application for automatic extension. But it must be file by April 15. Form 4868 does not buy you time to pay. You will be charged interest and a late payment penalty of 5% per month if you do not pay at least 90% of you tax by April 15.

Form 2688 is the application for an additional extension for 2 months. It must be filed by August 17 and your deadline is October 17. After this time period has expired, there are no more extensions.

So Do Not Procrastinate!!!!!

If you are 65 or older or blind, the standard deductions are as follows for tax year 2001:

· Single $5650
· Head of household $6650
· Married Filing Joint $8500
· Married Filing Separately $4700

NOTE! If you are married filing separately you may claim the standard deduction ONLY if your spouse claims the standard deduction. If your spouse itemizes, you must also itemize.

Itemized deductions are as follows:

· Medical and Dental expenses that exceed 7.5% of your Adjusted Gross Income (AGI)
· Taxes you paid
· Interest you paid (Mortgage)
· Gifts to charity
· Casualty and theft losses
· Job- related, investment and fax preparation expenses that exceed 2% of your AGI

Other miscellaneous itemized deductions not subject to the 2% limit such as work clothes, tools and Union dues.

Here are some of the deductions you can benefit from:

· Returns and allowances
· Advertising
· Bad Debts
· Car and Truck expenses
· Commission fees
· Depletion
· Depreciation
· Pension and profit sharing plans
· Rent or lease (autos, machinery or equipment)
· Supplies
· Repairs and Maintenance
· Taxes and Licenses
· Travel, meals and entertainment
· Utilities
· Wages
· Employee benefit programs
· Insurance (fire, theft, robbery, liability) other than health
· Interest
· Legal and professional services
· Office expenses
· Other expenses

· Coin or Stamp collections
· Jewelry and Art
· Stocks and Bonds
· Your Home (if you do not rollover your gain)
· House hold furnishings

NOTE! New land reduced the capital gain rate from 28% to 20%. This 20% rate is now the maximum rate going. 10% for those who are in the 15% tax bracket.

Many people sale a home and forget to report it on Form 2119. Later on it will catch up with you. If you do not file this form, you may have to pay a large state tax, even if no federal taxes are due.

· Rental property
· Royalties
· Partnership
· S Corporations
· Trusts
· Estates

Just like the Schedule C, here you can deduct all of your profit and loss expenses. Here is a list of deductions that will simply amaze you:

· Advertising
· Auto and travel
· Cleaning and Maintenance
· Commission
· Insurance
· Legal and other professional fees
· Management fees
· Mortgage Interest paid to banks
· Other interests
· Repairs
· Supplies

· Livestock
· Dairy
· Poultry
· Fish
· Aquiculture products
· Bee products
· Fruit
· Plantation
· Orchard
· Ranch
· Nursery
· Oyster bed

Just like the Schedule C form for profit and loss, Farmers can have the same deductions when filing their taxes.

· Car and Truck expenses
· Chemicals
· Conservation
· Custom Hire (machine work) expenses
· Depreciation and section 179 expenses
· Employee health and benefit programs
· Feed purchased
· Fertilizer and lime expenses
· Freight and trucking expenses
· Gas, fuel and oil except car and home)
· Insurance (other than health)

Form 2441Child and Dependant care expenses.

This is for mothers and fathers who have children that may need care while they are gone off to work. It is a very good deduction.

Your child must be:

· Age 13 or younger
· A dependant of any age who is physically or mentally handicapped.

Form 3903 Moving Expenses

Many, many taxpayers have had to move and/ or relocate because their job moved, or they moved to a new job.

· The first requirement is that the new job must be at least 50 miles further than your old home and old job.

· The second requirement is that you must be employed on a full-time basis at your new job for at least 39 weeks during the 12-month period. Immediately following your arrival.

· Self-employed people can also take part in this deduction.

The requirement for this one is:

78 weeks on the new job during the 24 months after your arrival.

Form 8829, expenses for Business Use of your Home

This form is for those taxpayers that work at home and have developed a bedroom for a home-office. The bedroom can be used for a home office and you are entitled to deduct 25% of square footage of your home, and the 25% relates to your one bedroom home office.

There are some deductions that you will enjoy having:

· Repairs and Maintenance
· Panting your Home Office
· Rent
· Depreciation