Expect a Form 1099 from each bank, broker, company, and fund you invested with in 2000. Save the instructions accompanying these forms for use when filing. Now, list any additional earned income from sources such as your own business, alimony, partnerships, estates or trusts, rental property income, taxable gains from selling your house, and any other source. Record these on paper listing dates received, amounts, and sources. Next, start documenting deductions to minimize your tax liability.
Mortgage interest is the largest deduction for many taxpayers.
Real estate taxes are deductible as well, so check your escrow account, mortgage statement, or a canceled check from the tax assessor to get this information. Charitable donations also are big deductions. Collect receipts from organizations to which you donated clothing, furniture, and the like and estimate the value of the items on the receipt. Other deductions include investment expenses such as maintenance fees and safety deposit boxes for storing your investment documents. Locate the receipts or statements showing these fees.