The first step in making tax time easier is ensuring that you have one location for all your documentation. If it's paper, receipts, reports, you need a place to put them throughout the year. And while you are already putting them into on place, why not organize them at the same time? Smead has some fabulous tools to make this process easy and painless. It's all about the right tool for the job.
From Smead Organomics:
Tax advice is something that all of us are interested in. Who doesn’t want to make sure that they are getting everything they are owed? The problem is that most tax advice centers around how to make the most of your deductions without facing the problem that sabotages a large number of us each year: we don’t have the proof that we deserve these deductions.
Each year, shortly after the New Year has arrived, people start bemoaning the fact that “tax time is going to be here before you know it”. Most admit it wouldn’t be such a dreaded task if they had kept track of things like receipts and other documents throughout the year. When you create a home for future reference items, you prevent that panicked feeling each spring as you try to remember the financial details of your year.
Create A System To Sort Income, Expenses And Taxes.
Throughout the year you will come across paper documents supporting important information for your tax returns. Sort this information into three categories, using separate hanging files or binders. If you like uniformity, stick with one color for your files or binders. If you are more visual, you might prefer a separate color for each category:
Valuable Tax Advice on Receipts
If you purchase items that you’ll need proof of when tax time comes, you’ll want to be sure to hang on to the receipt. Sometimes it may not be convenient to file the receipt immediately.
By: Audrey Thomas