Don’t lose your dining room table for a month while working on taxes. One of the files you should have near your desk is your tax folder. I like mine a bright red and it sits behind all of my standard desk files in my file drawer.
All through the year, anything that comes in that is related to taxes should be dropped into this file. Don’t take time at this point to sort them. It is more efficient to sort them when you seriously start to work on your taxes. Acknowledgements of contributions, real property tax statement, monthly mortgage payments, medical expenses, motor vehicle registration, etc. are examples of what you put into your folder. If you have a business, you will need your business receipts. Have an envelope for each month and after you enter the amount into your budget or QuickBooks, just drop the receipt into the envelope.
About this time of year forms begin to come in. Look for W-2 forms, 1099 forms, SSA-1099 for Social Security, investment interest expenses, Roth account statements, IRA forms, your end of year tax stub, and more. Watch for the forms that you expect and drop them into this folder.
I keep in the same drawer my tax papers from last year. I use this document as a template to make certain all forms are in. Your CPA may also have sent you a checklist. When I pull out last years tax paperwork and look it over, that’s when I remember to get my mileage log out of the car for my business deduction or call any group that have not yet sent me a needed form.
Call your CPA and set an appointment as soon as you feel everything is in or if you do your own taxes, set aside on your calendar a couple of large blocks of time to organize the paperwork and put it on the correct forms.
Doing the tax preparation is never fun but it is a lot easier if you have kept everything in one place.
Jonda S. Beattie Professional Organizer