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
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
Labels: Deductions, Document, Files, IRS, Key Transitions, Organize, Organizer, Organizing, Professional Organizer, Tax, Taxes
posted by Key Transitions at 3:21 PM
0 Comments:
Post a Comment
<< Home