Thursday, January 08, 2009

Get Organized NOW for taxes

The IRS announced the top 10 Tax Time Tips. The number one tip is
"Gather your records…now! It’s never too early to start getting together any documents or forms you’ll need when filing your taxes: receipts, canceled checks, and other documents that support an item of income or a deduction you’re taking on your return. Also, be on the lookout for W-2s and 1099s, coming soon from your employer."

Actually, you should have been getting documents together ALL year long. But if you didn't for 2008, there's still hope for 2009. I keep my records in an expanded file folder. I've tried various types. Here are 2 different ones:

These folders are great for receipts and records. I use one folder per year. I change most of the headings by putting labels over them, printed on the computer for the categories I use such as "Donations", "Utilities", or "Credit Card." I keep the folder handy in a drawer near where I pay my bills.

File space is smaller than the standard 8.5 by 11 inch papers, so most papers need to be folded to fit. Sometimes a larger type of expanded file my be needed.

Of course by mentioning these files, I'm probably helping out the storage industry as mentioned in this blog posting.

What do YOU do to help organize for taxes?

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