Tired of searching for your 2010 tax information? Are you regretting not having a system for saving that information, like you promised you would do last March? Do you want to sail through tax time next year?
There is hope, if you start now! We are only into the first quarter of 2011, so it will be fast and easy to set up a system to eliminate headaches and wasted time next year.
The biggest mistake people make in their tax time preparation is procrastinating. They say there are two things in this life you can count on; death and taxes, and some of us fear tax time more than death! Organizing your tax information now will help you get a jump on the process. This will enable you to plan for useful deductions, payments due on the return or, get a refund early. Another benefit will be getting your bills, receipts and statements organized so you can have a model to use each year, and you only have to create your system once!
Here are four easy steps to reduce stress during next tax season:
1. Designate a file drawer or storage/file crate that’s easily accessible for tax information only.
2. Make up tax file categories such as: Charitable Contributions/Mortgage statements/Yearend investment statements/1099s/Childcare expenses/Medical Expenses, etc.
3. Every day, open your mail over the wastebasket; toss/shred the junk and file items that are tax related as you pay your bills.
4. Separate the tax related cancelled checks and file them appropriately when reconciling your bank statement.
By setting up a system for your tax information in one place, everything you need will be at your fingertips, and you can find any information you are looking for in three minutes or less.
To work with your tax preparer more efficiently, create a file folder for questions or articles relating to taxes. When you talk to your accountant you’ll be prepared and focused and can get the answers you need without trying to remember what you read or heard “somewhere.”
If you aren’t sure what papers to keep for tax purposes always contact your attorney, accountant or financial specialist before throwing them out.
Barbara Ricketts is a Certified Professional Organizer (CPO) and member of The National Association of Professional Organizers. If you need professional assistance to get organized, contact her at MessDoctor@Mac.com or call 661-433-7263.