tips for easier tax filing

28 Feb

5 Organization Tips for Easier Tax Filing Next year

If tax season has you stressed out and scrambling to find documents every single year, it might be time to adopt a few organization tips for easier tax filing next year.

If you itemize for deductions and tax credits, especially, keeping up with a slew of documents and receipts year-round is a necessary hassle. While many people choose to toss all receipts in a shoe box and call it done, the method is still stressful and disorganized.

Here are a few organization tips for easier tax filing each year:

  • Use envelopes. Place envelopes in your purse, your car and at home to collect receipts on a regular basis. Then transfer those receipts to file folders once a month to keep them organized and together.
  • Create a simple folder system. Use folders to create a simplified but accessible system to store receipts and important documents. That way, when tax season rolls around you have all your needed documents in one convenient location.
  • Create a tax filing binder. Some people prefer to use a binder system rather than a folder system. Get a 2 or 3-inch binder with multiple tab dividers and pockets, and create a storage and filing system that works for you!
  • Keep files stored digitally. Whether you use a binder or folder system, it’s always a good idea to backup your most important and vital documents digitally. Paper is easily destroyed, so make sure to scan and store documents using a trusted and secure online software.
  • Make a checklist of all the forms you’ll need. Make and keep a running list of the documents and forms you’ll need come tax season so you’re already prepared! Starting in December, begin getting those forms together so you can hit the ground running in January.

Organizing your tax preparation system through the year is a great way to minimize stress every tax season as well! If it still all feels overwhelming, consider looking for a tax professional to help you each year.