Organizing for Tax Time

Posted by on Jun 22, 2013 in Nikki works with Elizabeth, the Professional Organizer | 0 comments

Organizing for Tax Time

The most important reason we save paper is to file our taxes. So how do you organize tax documents to make April 15th easier? Elizabeth, Nikki’s Professional Organizer, is showing her a system to make organizing for tax time easier. This system collects documentation throughout the year making April much easier.
Nikki currently uses the ever popular shoe box system for collecting tax information. She throws everything she thinks she might need into a shoe box. When it’s time to do taxes, the box is dumped and pawed through for the needed documentation.
Elizabeth asks Nikki what kind of documentation she needed to file her taxes last year. Nikki looks at last year’s taxes to anticipate what will be needed this year. They will set up a file folder for every line item that required some form of documentation. For example, while Nikki has been working with Elizabeth to declutter she has made lots of donations. All of the receipts for those donations will go in the file labeled “Charitable Donations.” Every line item that Nikki and Mark, her husband, collect documentation for throughout the year will each have its own labeled file. When tax time comes all the information needed will be there and already sorted by line item. The FreedomFiler® system that Nikki and Elizabeth are using already has the labels for each tax line. They just need to choose the particular ones they need and attach the labels.
As they are pulling items from the “Tax” box to file, Elizabeth recommends that Nikki make notes on any item that she might not remember the details about several months later. If she does this with each piece of documentation before she drops it into the file, she will not be sitting and wondering about it next April. Elizabeth also suggests that Nikki contact her tax professional to get more information about any specific items she might need to keep for documentation.
Nikki loves the system, but says she’ll have to come up with another reason to buy shoes since she won’t need shoe boxes for tax stuff anymore.

Next post: Nikki and Elizabeth organize “Vital Records.”

Learn along with Nikki as she and Elizabeth, the Professional Organizer, get the house organized room by room.
Copyright© 2013 Elizabeth Tawney Gross, Organizing For Everyday, LLC

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