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Update: I stopped tracking every single expense and my tax bill went down
For two years I logged every coffee and mile, spending maybe 5 hours a week on it. This year, I only tracked big things like software, gear over $100, and my home office square footage. My CPA said my deductions were actually cleaner and my estimated payment for 2023 was about $300 less than last year. I think I was over-complicating it and claiming too many shaky, small deductions that raised flags. Has anyone else found that simpler bookkeeping worked better for them?
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spencerross14d ago
My old system was a shoebox full of gas station receipts. My new CPA told me to just give her the car lease statement and my internet bill. She said it was way easier to defend a few solid expenses than a hundred tiny ones.
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sanchez.ivan14d ago
You saying that your CPA called your deductions "cleaner" really hits home. I was the same way, obsessed with logging every tiny thing. I figured more detail was always better. But my accountant basically told me the same thing last year, that a pile of small receipts for stuff under twenty bucks just makes more work for everyone and can look bad. Switching to only tracking the big, clear cut items has saved me so much time and stress.
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