I love tax time, it is the perfect motivator for organizing your documents and receipts! Take this time to do a little Spring cleaning in your filing system by organizing your historical documents.
One of the main issues with filing systems is they may get too bulky and difficult because of the overwhelming amount of paper in the system. I recommend using tax time as your filing system reboot. Clear the clutter and do your taxes at the same time, multi-tasking at its best!
First collect all your tax documents, separating each year. The Lorow Company has a great tax organizer that will walk you through documents you will need including income information and itemized deduction documentation. Make sure you are using appropriate receipts and statements for documentation.
Once the return is completed, include a paper copy of the forms with the supporting documents. I even suggest including a digital copy for quick access, especially if you used online software. This helps make next year’s return easier if you are able to cross reference the previous year’s return.
Then combine all this information and put it into readily accessible storage, making sure to label appropriately. I recommend using the Bigso Document Boxes from the Container Store. This removes a large bulk of the filing system documentation while making information retrieval much easier for each tax year!
You have to collect your tax documents to begin with so why not take the time to remove old documents, collect items for your taxes, and maintain your filing system. And for more information, check out these links for on record retention and home office organization.
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