Need help getting things in order?
Today’s post provides you with a few simple tips to make managing your taxes a little less chaotic.
Collect all necessary tax forms, receipts and documentation before working on taxes.
Before you even start to work on your taxes, make sure you have all the necessary tax forms, receipts and other documents at the ready. Having all of your tax documents in hand will help make processing your taxes much that easier; you won’t waste time stopping to look for or having to request and wait for new and/or replacement documents. If you are not sure what items you need to prepare your taxes, ask a tax professional. Store hard copy documents in a brightly colored folder for quick recognition, likewise, if you receive digital information required for taxes, store items in a single folder on your computer.
Schedule a time to work on taxes.
It’s human nature to wait until the last minute to do something…and filing one’s taxes is no exception! Instead of having April 15th sneak up on you, make your own personal due date and schedule a day and time to work on your taxes. You could schedule one large chunk of time or several smaller chunks. Be sure you can work in an unhurried and distraction-free environment (or as close to one as possible) to focus on the task at hand. If you are having a tax professional prepare your taxes, contact them as soon as possible to get the necessary documents to them and to get the process underway ASAP.
Prepare yearly tax folders.
Spending just a few minutes to get your tax files in order will save you from major headaches later should you have to refer to past documents. Get into the habit of making a folder for any tax year, no matter if you file taxes online or via hard copy documents. A tax folder should have the tax year clearly marked on it, as well as the type of taxes: personal, business, federal, state and so forth. Be sure to include copies of documents filed with the IRS and any supporting documentation, tax documents, receipts and the like.
How about you? What steps will you take this year to make filing your taxes a little less chaotic? Leave a comment below and join the conversation!