“Think about the paper trail,” she suggested.

Braam said he prefers to track income and expenses with a computer spreadsheet.

“You know what the best system is? Whatever works for you,” Braam said.

Plan ahead for changes

Every year brings changes to the tax laws, and 2007 is no exception. By learning about changes early, taxpayers can take advantage of tax benefits and avoid mistakes.

Swanson said the biggest change may be the new rules on recording charitable donations.

No longer can you drop $5 into the Salvation Army kettle, write yourself a note and claim a deduction. In 2007 donors must keep the receipt, a copy of the check or a record of the credit card transaction to claim a deduction.

Swanson said the dreaded Alternative Minimum Tax seems to be snagging more and more taxpayers in the area every year. In 2007, the threshold for the AMT will be lower, a change taxpayers “definitely have to worry about,” she said.

Business travelers will get a little help in 2007 when the federal mileage reimbursement rate increases to 48.5 cents per mile from 44.5 cents. Reimbursement for medical travel and “moving miles” — the cost of moving for a job in another community — will also increase.

Contribution limits for retirement plans will increase slightly in 2007. Anyone with a 401(k) or IRA should consider increasing their annual contribution, Swanson said.

Morken said teens who get significant unearned income from a parent may get hit with a larger tax bill in 2007. A recent change in the “kiddie tax,” retroactive to Jan. 1 2006, means teens with unearned income exceeding $1,700 may be taxed at their parents’ rate.

All of the tax law changes coming in 2007 are too numerous to list. Each household or individual has to research their particular tax situation or meet with a tax advisor.

But get those seeds in the ground now and Tax Day 2008 could be a rich harvest.