Q: Is there anything I can do now, in the middle of the year, to help with my taxes?

A: Absolutely. One of the simplest things you can do is keep good records as you go.

Taxes largely operate on a “pay as you go” system. Your recordkeeping should work the same way: document as you go. Keeping records when transactions happen generally gives you more complete and accurate information than trying to reconstruct everything months—or years—later.

• Home improvements are a great example.
If you own a home, keep receipts and records for significant improvements such as a new roof, windows, heating system, or major renovations. Certain improvements may qualify for tax credits, while others may increase what you’ve invested in your home and potentially reduce taxable gain when you eventually sell it.

• The same principle applies to everyday tax records.
Even if you don’t own a home, keep records for expenses that could affect your taxes. For example, if you pay for qualifying child or dependent care so you can work, keeping payment records and provider information throughout the year can make it much easier to claim any credit you’re entitled to.

Bottom Line
Good tax planning doesn’t begin at tax time. Document as you go. Keeping the right records throughout the year can help you claim available deductions and credits, properly calculate gains when you sell something, and avoid paying more tax than necessary.