In recognition of recent gasoline price increases, the IRS has raised the standard mileage rate for the final six months of 2008.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through December 31, 2008. The rate for the first half of 2008 is 50.5 cents.

The IRS normally updates the mileage rates once a year, but given the significant increases in gas prices this year, the IRS has made a special rate increase in the middle of the year.

If you’re self employed, you likely experience income slumps. It may be because your business is cyclical (being a tax professional, I am extremely busy the first 4 months of the year, but then things slow down drastically during the summer months), or it may be because the economy is slow, or it may be just because you haven’t done any marketing in a while.

Whatever the reason, I like to take some time to brainstorm about ways I can increase my income. And when things are really slow, I pull that list out and try to do something every day to get my income back up to where I want it to be.

I was recently interviewed by Cara of The Household Helper about getting your tax and financial records organized NOW for next year.

Some of the tips we talked about include…

- Create a system NOW: a folder for 2008 taxes where you can easily insert paperwork related to your taxes.

- Rule of thumb: keep copies of anything you will be deducting for 7 years. Keep the tax return as well as the back-up for that return.

- If you are NOT deducting things like utility bills or credit card bills, you DO NOT need to keep those statements (I usually keep them until I know the last check/payment cleared).

If you’re like me, tax season is exhausting and stressful, especially if you owe Uncle Sam. The deadline is past, but you may still wonder if you paid too much or if you missed any deductions that could have saved you money. Well the best way to avoid that overtaxed feeling (pun intended) is to get a jump on next year’s taxes now.

Here are a few smart tax moves you can do now to make next year’s tax season less painful:

Get organized: If your tax filing system consists of shoeboxes and shopping bags, now is a good time to move your finances to your computer. You still need to save key receipts and documents, but entering spending, savings and investment information into a program like Quicken or Microsoft Money (whichever is easier for you to use), will not only give you a clearer idea of your finances, but it will make your tax filing process much easier for your tax professional or if you do it yourself.

Continue Reading Get a Jump on Next Year’s Taxes Now

Employers are required by law to mail all employee W2’s by the end of January each year. So, January 31st has come and gone and you haven’t yet received your W2. What should you do?

First, consider whether or not you’ve allowed enough time for the mailing to reach you. Employers need only mail the document by the 31st of January, not have it in your hands by that date.