Being Organized for Tax Time

by Brooke Tolman
(last updated April 21, 2016)

Tax time can be daunting if you aren't really sure what your doing or what you need to have ready. If you tackle it now and get all your paperwork in order, you'll be organized and ready when it comes around. Here are a few simple ways to keep organized through out the year, so when tax time comes around your ready to get it done.

  • Have a place to store all your tax documents and receipts. If you have a simple financial life, all you may need is a few file folders, while if your financial life is a bit more complex you might need a whole filing cabinet. Have a file folder for bank statements, property tax records, retirement plan funds, etc. And remember, it's smart to keep previous tax records on the off chance that you're ever audited, so keep a folder of past tax papers as well for at least 5 years.
  • Besides filing away all your paperwork, you'll need a specific folder for tax related paperwork such as W-2's, 1099's or other such paperwork you might need to access quickly when doing your taxes. The moment you get them, drop them in this folder. If you leave them on your desk or in your mail pile, they might get thrown away.
  • You'll also need a specific folder for receipts or proof of deductable items such as charitable donations, medical expenses, and interest receipts.
  • Planning ahead in your spending for the year helps so when tax season comes around you won't be surprised by anything that shows up on your statement. If you need, you can hire a financial consultant to help out with this aspect. An important part of being organized for tax time is having an organized budget.
  • File your taxes early. You don't want to wait and sneak in just before the deadline like millions of Americans do each year. Not only will it be out of the way and off your back, but you'll know what's going on and will decrease your chances of mixing up last years transactions with this year.

Being organized will make tax time so much less stressful than it has been in the past. It will also save you a lot of time and hassle. It only takes 3 seconds to stick a receipt in a file folder, as opposed to the hours you might spend hunting for it on tax day if you don't file it away initially.

Author Bio

Brooke Tolman

Brooke is a graduate of Brigham Young University with a Bachelors of Science degree in Exercise Science. She currently resides in Seattle where she works as a freelance data analyst and personal trainer. She hopes to spend her life camping and traveling the world. ...

MORE FROM BROOKE

Types of Retaining Walls

Retaining walls are the perfect solution to help prevent erosion and hold soil in place. Learn about the many different types ...

Discover More

Wine Storage

Wanting to be a wine buff but not sure where or how to store it all? Storing wine can be simple. By following a few rules, ...

Discover More

Cleaning Rugs

Floors make up a huge percentage of what you see in a home. Making sure your rugs are clean is a very important part of ...

Discover More

MAX Power! A powerful lithium-ion drill/driver that delivers 0-to-650 RPM and 115 inches-per-pound of torque in a lightweight, easy-to-use package. An anti-slip soft grip and LED worklight makes this tool a delight to use. Check out Black & Decker 20-Volt Cordless Drill/Driver today!

More Organizing Tips

Organizing Sheet Music

Musical talent is a great gift to possess. Having easy organized access to your sheet music will provide you with endless ...

Discover More

Organizing Your Medical Records

Maintaining an organized system for your medical records can save you from getting frustration as you seek updated important ...

Discover More

Organizing Expenses

Knowing how to organize your expenses is becoming more and more important as time goes by. It doesn't matter if it is your ...

Discover More
Subscribe

FREE SERVICE: Receive an e-mail several times each week with a featured organizational tip. Enter your address and click "Subscribe."

Comments

If you would like to add an image to your comment (not an avatar, but an image to help in making the point of your comment), include the characters [{fig}] in your comment text. You’ll be prompted to upload your image when you submit the comment. Maximum image size is 6Mpixels. Images larger than 600px wide or 1000px tall will be reduced. Up to three images may be included in a comment. All images are subject to review. Commenting privileges may be curtailed if inappropriate images are posted.

What is 6 + 0?

There are currently no comments for this tip. (Be the first to leave your comment—just use the simple form above!)


Subscribe

FREE SERVICE: Receive an e-mail several times each week with a featured organizational tip. Enter your address and click "Subscribe."

(Your e-mail address is not shared with anyone, ever.)