Taxes are also imposed by many subnational entities. Taxes consist of direct tax or indirect tax, and may be paid in money or as its labour equivalent (often but not always unpaid). A tax may be defined as a "pecuniary burden laid upon individuals or property to support the government, a payment exacted by legislative authority." A tax "is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority" and is "any contribution imposed by government whether under the name of toll, tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply, or other name."
So, you want to be a smart-ass consumer who always puts his money to good use and who, miraculously, never gets headaches during tax times? Well, we're not actually advising you to go to a witch doctor or something to get blessed with a godly power that can make everybody around you envious. Actually, there's a more REALISTIC way. What is this way? Keep binding folders.
But don't get us wrong. Of course there's nothing (take note, NOTHING) really special about binding folders (and we're not suggesting, you taking that binding folder to the witch doctor. Go back to reality, please). It's your task to make these pieces of plastic and cardboard special. Think: what are binding folders for? They're for collecting important documents, right? As a consumer and a ?variable? market entity, you'll encounter lots of seemingly-useless-but-actually-important documents in the form receipts. What you should do is to keep all your receipts in a binding folder, monthly, like a diary. By doing this, you'll be able to avoid hassles (including going to the meant-to-be-unfriendly city tax records office) when you encounter a tax problem. Plus, good record-keeping will help you remember the various transactions you made during the year (and month), which in turn may make filing your return a less ?taxing? experience.
However, we're not saying that you should ?collect? ALL the receipts you receive. Just use your common sense: will keeping Mcdonald's receipts (considering that you eat there almost 2 times a day, everyday) make a ?freaking? difference in your life? Obviously, no, but that's unless of course, the Mcdonald's branch is where you officially had your first kiss or other similar instances that you think are ?memorable?. What you should keep are, generally speaking, any and all documents that may have an impact on your federal tax return:
1) Bills
2) Credit card and other receipts
3) Invoices
4) Mileage logs
5) Canceled, imaged or substitute checks or any other proof of payment
6) Any other records to support deductions or credits you claim on your return
