Staying organized for tax time. Post your ideas.
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I'm a bookkeeper, and keep my records very organized, but many people don't. My suggestion is to make use of the program that probably came with the software on your computer such as the Microsoft Money program.
This program is very easy to use, even for a beginner, and allows you to make entries just like you would in a checkbook register, and allocate them to different categories. You can set up different accounts like Cash, checking account, credit cards, etc. Every time you make a deposit into your checking account or write a check or use your debit card, you make an entry into the checking account register on your computer. IMPORTANT: For this to work, you must make all the same entries that you do in your manual checkbook register!
At the end of the year, you generate a report using this same software, and it will show income and expenses for the entire year under the appropriate categories, which makes tax preparation SO much easier. (You can also balance your checkbook each month on the computer VERY easily!) You can see at a glance how much you've earned and spent by category, and then all you need to do, with minimal effort, is transfer those amounts to your income tax form, or print out the report to give to your tax preparer. It really makes life much easier and tax time much less stressful!
Laura - Oceanside, CA
It is the dreaded tax season again, but my taxes will much easier to take care of. In my day planner, I have a plastic envelope, (pencil holder) that holds all receipts that should go on taxes. At home, I have attached, a bill binder (with months on tabs) to put all medical bills, medical visit receipts, all dental bills, etc. in the appropriate month. Taxes are now a breeze! You can forget that shoe box of information to dig through!
By Darlin Daisy
I set up a simple spreadsheet with sections for medical expenses, cash and goods donations, and other deductions. I add entries to this spreadsheet as they arise all year long. Then, at tax time, I just print off a copy and I have a one-page summary to use in completing my tax forms. It saves a lot of time and paper-shuffling. I file this printout with my other tax documentation. Then, after tax season, I copy the spreadsheet into a new document, remove all the entries, change the date, and I'm ready to start the process all over again for the following year.
I've used My Tax Records (from www.GetOrganizedHere.com) the past two years. Definitely keeps everything organized and helps make sure I don't forget anything important!
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