By now you have probably started receiving those “Important Tax Documents Enclosed” letters in the mail or in your email inbox. If you haven’t already done so, it’s time to get yourself organized. I have a filing system in place, so for me, it’s just pulling the documents out from the past year, gathering the ones that are coming now in the mail, and putting them all in one folder so I am ready to go when the time comes.
If you haven’t been so organized, maybe this is the year to start! The simplest thing to do is get a folder – it can be any type, or even a shoebox! Then, whenever something comes to you throughout the year that could have tax implications, you stick it in the folder. These documents could be anything from medical bills, to charitable donation receipts, educational expenses, etc. When you do your taxes this year, make a list of the things you needed to do them. Then keep that list attached to the folder you have set aside. When you get something that you’re not sure if you will need, check that list – if you will need it pop it in there.
Organizing yourself doesn’t have to be complex (in fact the more complex the less likely you are to do it!). Keep it simple, and do what works for you. And if you need motivation, just think about all the pennies you will save by having those documents that will help you claim all those deductions!