Keep a folder in a place it won't get lost or misplaced. Every time you receive something you will need for your taxes put it in our folder. (EX. property taxes, donation receipts, etc.) then it will be handy, and in one place next year when you go do your taxes.
By Gail from Rochester, NY
I use a monthly calendar to organize my financial life. I don't use a fancy one, just one that I receive as a promotional free item. I staple all check stubs and I write the amount of my receipts on the day that I had the expense.
Every January I set up a new manila folder and mark it with the year. Then every time I have a receipt or statement I need to save, I just put it in the folder. Come tax season all the paperwork is in one place.
When I get my first tax document in the mail (1099, W-2, etc.), I designate a drawer near my computer as my "tax documents drawer" and let everyone who handles the mail know.
I organize my tax papers in a binder using clear page protector covers and with labelled dividers to keep the categories separate and organized. Each time something for tax comes in it is placed in the binder in the correct division.
A very helpful publication can be found at the Internal Revenue Service web site. www.irs.gov, It is Publication 552 and it is all about record keeping.
Tax records were always a problem for me. I now use an accordion file folder with 12 slots. I use one for each month. I keep it next to my computer since I do most of my bills on line.
With the tax season already behind us (almost!), here are a few suggestions I have to make next year's preparations a bit easier.
Start out this month preparing for next year's tax time! Label 12 business-size envelopes (one for each month), and put all your receipts in the respective envelopes.
I use a portion of my home for business and I can deduct a portion of my utilities, home improvements, and purchases pertaining to the business from my taxes.
Staying organized for tax time. Post your ideas.
I'm a bookkeeper, and keep my records very organized, but many people don't. My suggestion is to make use of the program that probably came with the software on your computer such as the Microsoft Money program.
This program is very easy to use, even for a beginner, and allows you to make entries just like you would in a checkbook register, and allocate them to different categories. You can set up different accounts like Cash, checking account, credit cards, etc. Every time you make a deposit into your checking account or write a check or use your debit card, you make an entry into the checking account register on your computer. IMPORTANT: For this to work, you must make all the same entries that you do in your manual checkbook register!
At the end of the year, you generate a report using this same software, and it will show income and expenses for the entire year under the appropriate categories, which makes tax preparation SO much easier. (You can also balance your checkbook each month on the computer VERY easily!) You can see at a glance how much you've earned and spent by category, and then all you need to do, with minimal effort, is transfer those amounts to your income tax form, or print out the report to give to your tax preparer. It really makes life much easier and tax time much less stressful!
Laura - Oceanside, CA
It is the dreaded tax season again, but my taxes will much easier to take care of. In my day planner, I have a plastic envelope, (pencil holder) that holds all receipts that should go on taxes. At home, I have attached, a bill binder (with months on tabs) to put all medical bills, medical visit receipts, all dental bills, etc. in the appropriate month. Taxes are now a breeze! You can forget that shoe box of information to dig through!
By Darlin Daisy
I set up a simple spreadsheet with sections for medical expenses, cash and goods donations, and other deductions. I add entries to this spreadsheet as they arise all year long. Then, at tax time, I just print off a copy and I have a one-page summary to use in completing my tax forms.
I've used My Tax Records (from www.GetOrganizedHere.com) the past two years. Definitely keeps everything organized and helps make sure I don't forget anything important!
Don't wait until January to gather your receipts and forms to file your taxes; do it throughout the year and save yourself time and the grief. Using a two pocket folder, with a medium tipped marker, write the word "Taxes" and whatever year on the folder.
This is a page about organizing receipts for taxes. Getting an keeping your tax deductible receipts organized will help when preparing your return and can help with potential refunds or lower taxes owed.