Tax losses are becoming more and more complex. Most of the people think that hiring a tax consultant is a better option as he will do some magic to reduce their taxes.

Admitting that there are many competent tax consultants to take care of your return, check what you take with you when you go to request him for preparing your return? Remember he is not a magician. Go to him with organized papers and let him work on them to give you real tax saving tips.

The box system

To begin with, save all your receipts in one box, as and when you get them. They will put real dollars in your pocket. You may walk out of a store without small change but you should never walk out without a receipt. These receipts are very important because IRS is demanding documentation for every claim you make.

Once you grab the receipts, put them in a box or in a special file. After a couple of months sort them out into categories and put the checks and receipts in envelopes with the name of category written on them. So you will have envelopes for charitable contributions, medical expenses, property taxes, mortgage and so on. If you feel there is no category then keep such receipts in a separate envelope. Now it's easy for your consultant to translate them into deductible expenses.

You can do all this work while listening to music and such light work will save hundreds and thousands of dollars for you.

Never give your consultant a bag full of unsorted receipts. It's the most irritating thing. It will waste his time and your money. Tax preparation is not a fun and your sincerity will make him happy. Try to minimize his pain.

Using this "box" method your consultant will be able to complete his work faster and with more accuracy. He can concentrate on tax planning issues instead of concentrating on organizing the vouchers, receipts and checks. What you want from your consultant is the key question. More interest you show in your approach, more proficient he will be.