E-Z Organization: Let’s Talk Taxes
You’ve filed your taxes and have tons of paperwork. What’s next? If you haven’t filed yet, tax deadline (April 15) is right around the corner. Whether you love or loathe tax season, it is something most people have to do. All of the paperwork involved can be a bit overwhelming when you don’t have organizing systems in place. Nobody ever really knows how to keep tax records organized and functional. For more detailed information, check with your CPA or irs.gov.
Here are a few of our tips and tricks we share with clients to make their lives easier:
Keep records for 3 years from the date you filed your original return, including supporting forms and/or schedules
Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction
Set aside receipts for tax deductions
Separate documents into separate folders (or digital folders) and sort monthly
Add receipts to an organized spreadsheet for easy reference
Shred regular receipts once you see them on your bank statement online or you scan them into your digital records
Back up your digital records on a drive. You can never predict a tech failure
Storage options: digital, binder, file box, envelope (one for each year)