Tax Mania Solutions
Written by Jennifer Doyle
Okay, here it comes. Tax Day! While April may be anticipated for the end of winter it also brings about the dreaded April 15th tax deadline. If you’re like many Americans you are struggling to keep all your paperwork organized. Here are some tips so that NEXT year might not look so gloomy when you begin to prepare your taxes.
1. Create a system. Do you have a filing system in place for your expenses and income? If you do not, make one with folders or electronically. Organizing paperwork is a challenge but an easy goal is to have all records kept together. Have a folder for each category and file accordingly. An even better bet would be to purchase a computer program that will help keep track. Your accountant will love you for it.
2. Keep track. Set an appointment with yourself once a week or month to go over your finances. During this time pay your bills, purge any receipts or credit card bills that are no longer needed, and update your files. Doing this chore periodically instead of yearly will make it much less daunting.
3. Protect. Your tax returns have to be kept forever so store them in a fire safe box. The IRS does not have a statue of limitations on how far back they can say they did not receive a return. However, the supporting documents only need to be saved for six years. Keep this separate and purge anything over the six-year limit.
4. Separate. Keep warranties separate from your other financial papers. Warranties are not referred to very often and will only contribute to the overwhelming feeling of clutter that surfaces.
Now is a good time to get your financial records in order. Begin these tips today and next years Tax Day may not loom as large!
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