Happy February! It’s that time of the year that most of us dread, Tax Time! Even as a professional organizer, I dread this too. So instead of procrastinating this year, I decided to hit my taxes head on this year!! Organizing your paperwork for tax time can definitely feel overwhelming, but getting things in order early can make a big difference when it comes to filing. Here are some Tips from Tonia Tomlin, a professional organizer, to help you stay on track:
- Create Separate Folders for Different Categories
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- Income: Include your W-2s, 1099s, investment income statements, etc.
- Deductions: Gather receipts and statements related to medical expenses, charitable donations, and other deductible expenses.
- Expenses: If you’re self-employed, this would include business-related expenses, such as receipts for supplies, travel, and office equipment.
- Tax Forms: Keep all forms related to your tax filings in one folder for easy access.
- Use a Digital Filing System
Scan or take photos of your paperwork and store it in a digital folder. Use cloud storage or apps like Dropbox, Google Drive, or Evernote to stay organized. This also helps in case you misplace or lose paper documents.
- Label Everything Clearly
Proper labeling can make a huge difference when searching for specific documents! Clearly label folders or digital files with titles like “2024 Medical Expenses” or “2024 Charitable Donations.”
- Set Up a Filing System Year-Round
Keep a dedicated space for all tax-related documents as you receive them throughout the year, rather than waiting until tax season. This way, you’ll already have everything in place when it’s time to file.
- Keep a Tax Folder for Potential Audit Documentation
If you’re ever audited, it’s helpful to have all supporting documents, including receipts, bank statements, and invoices, easily accessible. Create a “Tax Audit” folder and place it in a secure location.
- Make Sure Everything Is Accurate
Double-check the numbers on your forms, receipts, and invoices before filing to avoid errors that could delay your return or trigger an audit. If you’re unsure about any documents, consider consulting with a tax professional.
- Shred Old Documents
Once tax season is over, shred documents you no longer need, like old tax returns or receipts that are beyond the statute of limitations. Keep the documents you need for at least 3-7 years, depending on your tax situation. I like to use, Pro Shred in Dallas! They can even come to your home or place of business.
By staying organized year-round, the tax filing process becomes far less stressful. Hopefully my Tips from Tonia will be a solid system throughout the year that can help you stay ahead of the game and make tax time easier to handle. If you are unable to keep up with your paperwork for tax time, now is a good time to call us! 😊
Tonia
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