Year-End Reminders

As 2015 comes to a close, it’s important to take a moment to breathe. Stop working, stop moving, and appreciate a beak and time with your family. Before you take your much-deserved rest, make sure there are a few tasks you check off your list. Though they don’t take very long, they will send you into 2016 prepared and confident.

Review your FSA

If you have money in a Flexible Spending Account through your employer, take some time to review the amount of money remaining as well as the provisions of the account. While some accounts allow you to roll over $500, that is not the case for all. If your account has no roll-over provision and you do have money remaining, schedule some end-of-year doctors appointments, buy new glasses or contacts, or fill some prescriptions. You will lose the money you don’t spend, and you don’t want to start 2016 with a loss.

Check your Odometer

If you use your car for business, go to your car NOW and write down the odometer reading. For more concrete evidence, take a picture and save it in your tax folder. In order to qualify for a mileage deduction, you must have evidence of the total miles added to your vehicle for the year (mileage reading on January 1, 2015 minus mileage reading on January 1, 2016).

You must also document the number of miles you drive for business-specific reasons, the date of these trips, and the reason. If you fell behind on your documentation in 2015, consider downloading an app such as Mile Tracker, TripLog, or MileBug to hold you accountable in 2016. Finally, begin documenting your mileage for 2016 on January 1. Take a picture of your odometer reading and write down the make and model of your vehicle.

You may also qualify for a mileage deduction if you used your vehicle to travel to doctor visits and/or to perform charitable services. Similar to the business deduction, you must document the amount driven for these reasons and the total amount driven in 2015.