ORGANIZE YOUR DOCUMENTS FOR TAX PREPARATION

Tax documents have begun t o arrive in the mail and soon that April fifteenth deadline for filing will be here. Do you have all your documents organized and ready to fill out your forms? Don’t despair if the answer is “no”. You can start right now to set up a simple system that will allow you to do your taxes quickly.

If you do not itemize, you will need one folder in which to put all your forms and documents as they arrive. After you have used the information to fill out your forms, make a copy of your tax documents and all attachments to retain for your personal files. Even if you file electronically, it is good practice to retain a hard copy of your final tax form and attachments. Put those documents in a folder marked with the year for which the taxes are filed and the date of filing. Keep the files in reverse chronological order in a file box that you can access if needed.

If you itemize your tax deductions, you can use a section of a standing file, a portable file or an accordion file with enough sections for the various categories of documents you need to save throughout the year. Some categories you might consider are income, alimony, child support, medical expense, childcare expense, and charitable deductions. Use an additional folder marked “other deductions” to get started. As you separate you receipts you will become aware of other categories you need to create.

After you (or a tax preparer) complete your tax return make sure you retain a copy of the forms and all attachments. I like to keep the finished documents in an accordion file separated into categories that coincide with the tax form deduction lines. That way, if I am ever audited, I have back up for each income and deduction entry. It is sufficient just to keep the hard copies in a folder marked with the year for which the taxes are filed and the date of filing. File the accordion files or final folders in reverse chronological order in a place that is easily accessible in case you need the information. Use the folders you prepared to sort your documents and receipts to collect and file pertinent information throughout the year.

Next year everything will be ready to prepare and file as soon as your last document arrives in the mail.

Beverly & Kristen
www.KeyTransitions.net

RESOLVE TO MAKE YOURSELF HAPPY

The National Association of Professional Organizers designates January as Get Organized Month. Getting organized is the third most common type of New Year’s resolution, ranking right behind resolutions that deal with better health and better finances.

In our experience, people who successfully get organized and stay organized do it for themselves. Many times we hear: “ I would really be happy if I could have somebody over and not be embarrassed”, “I would really be happy if I could walk in my closet and have a clue what is in there”, “I would really be happy if I could manage my mail and get my bills paid on time.”

These folks know that the clutter in their lives is a problem and they would be happier without it.

That is a good start. Once they decided what would make them happy, they set about to achieve the improvement. They called us to help them plan and execute a strategy to make it happen.

Everyone does not need a professional organizer to get organized. Everyone does need a personal goal and a plan to reach it. It is easier to keep your goal to get organized if it meets your personal need and is not done to please someone else. It is easier to stay organized if your system is personalized for your style and needs. It does not have to be complicated. It doesn’t even have to be pretty, if that is not important to you. It just has to work for you.

So when you make your resolution to get organized, make a “happiness statement”. For instance, “It would really make me happy to have all the pet stuff organized so I can quickly take care of the dogs when I get home from work”. Then execute your plan for organizing the pet supplies and celebrate your accomplishment. Keep it organized for a month and it will most likely stay that way.

Then you can make yourself happy with another goal.

This gives a whole new meaning to “Have a happy New Year!”

Beverly & Kristen
www.KeyTransitions.net