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Following these three rules can make tax time in Idaho state less stressful and help you avoid overpaying the IRS. Start by picking up a file box, tote or filing cabinet. Label files based on the following groups below.

Gather your Idaho tax records all year.

Collect all forms, receipts, financial reports from banks, Idaho or out-of-state investments, Idaho business expenses, education cost, and mortgage interest statements to name a few. File daily if possible.

Group records by how you file.

Most documents will fall under one of these categories; income, deductions and exemptions.

Types of income:

  • Wages, salary, tips, bonuses
  • Spiffs, reimbursements etc.
  • Investment income
  • Interest income
  • Social Security benefits
  • IRA and Pension distributions
  • Unemployment benefits
  • Rental income

Common deductions:

  • Mortgage Interest
  • Mileage
  • Work or Idaho business-related expenses
  • Real estate taxes paid
  • Property taxes paid

Exemptions:

  • Earned income credit
  • Education expenses
  • Child care expenses
  • Charitable contributions
  • Contributions to IRAs

Properly organizing throughout the year will help you prepare your Idaho state and federal taxes in less time and retain the documentation to support your return if you were to get audited.