We all have to file taxes. While doing your taxes may not be something to break out into song over, it doesn’t need to be a major stressor or time-consumer either. One of the best things you can do for yourself is to make sure your tax papers are in order every year. Trust me-this is not as bad as it sounds and it makes tax time a breeze!
Here’s what to do:
1. Create a folder for every company you do business with each year. P.S. if you pay online, be sure to print the receipt of the things you’re going to write off at the end of the tax year.
2. Then create a folder named “Taxes”. This is where you’ll keep things that don’t necessarily reoccur every month (for example your DMV renewal or donations you’ve made throughout the year). This is also where you should keep any questions you might have for your tax preparer, along with your bank routing number/account number if you’re going to be e-filing.
3. Also create a folder named “Medical For (family member name)”. This is where you’ll keep all the medical receipts for each member of your family. This will come handy at tax time.
4. At the end of each year, determine which of your files are write-offs. Calculate the amounts you spent in each folder so you can report it to your tax preparer.
5. After you’ve filed your taxes, save all the paperwork as evidence in case you ever are questioned. Bundle all the statements/receipts, etc. that you’ve claimed. Label the bundle with the tax year and store it in a safe place.
6. To find out how long to keep your filed taxes, ask your tax preparer.
Bright side: If you ever get audited, you won’t have to worry if you lost a receipt, etc. because you’ll know that ALL the things you wrote off on your tax forms will have the evidence to back it up!
Are you following along with XOXO’s 30-Day Tax Challenge? We’ve put together a fun and easy tip sheet to get you ready for tax day! Download your free PDF here: https://xoxorganizing.com/challenge-30-day-tax-challenge/
