Five tips for organizing your taxes
(NAPSI)-Tax time doesn’t have to be so taxing. Not if you approach it with the right strategy. Here are five simple tips to make preparing to file much easier:
l Organize your important documents in advance. Tax files need to be kept for seven years, so it’s a good idea to have plenty of file folders available that will let you sort documents according to expense name and category.
l Use durable labels that will stay legible and in place. Color-coded labels are a great way to identify your different file folders at a glance so you can easily keep track of receipts and expenses through the years.
l Pick up a labeling device that produces laminated labels, like the Brother P-touch PT-2600 Electronic Labeling System to help with these tax organization chores. In addition to printing laminated labels in dozens of sizes and colors, the PT-2600 will also print Avery address and return address labels one at a time, just by switching cassettes. No more feeding a full sheet of labels through the printer for one or two letters.
l Be sure to keep receipts for any other home business supplies you buy, even if you work from home one or two days a week. Don’t forget to keep a file for the qualified charitable donations too.
l Keep in mind that even if you are finished with this year’s taxes, you still need to be organized for next year. Better year-round organization is the key to filing better returns with fewer last-minute headaches, year after year.
It’s true that there are countless tax software packages, CPAs, and national tax preparation chains that are willing to hold your hand through this process, but all of them still expect you to have your paperwork in order. A little organization every day will make the whole process a lot easier.
Good luck and many happy returns!
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