A smart way to approach tax planning would be to look ahead, not back. Run through this list of tax-saving ideas to make sure you're taking advantage of all the available opportunities to reduce your tax bite. Good tax planning will return taxpayers more dollars than clever tax preparation.
Accurate records. The best way to save on taxes is to keep accurate records in a folder for year-end tax planning. Go through your check register for appropriate deductions. If you entertain for business, back up restaurant stubs with notations or diary entries showing the date, place, name of person entertained and business purpose.