We are out of tax season! That is unless you have filed for an extension or have corrections to make. If you have completed your taxes completely, what is left to do? Organize.
So you have gotten through another year of taxes, but it was difficult because you did not keep your documents as organized as you should have. Today, we are going to give you some ideas on how to organize your tax documents to fight against worry come tax season next year!
First, grab up all your documents and lay them all on the floor. A table sometimes isn't enough room for the number of papers one has.
Second, have folders that are easy to write on. When you are making your organized system, be concise and thorough. The categories we suggest labeling are listed below.
This includes all of your pay stubs, 1099s, W-2s, interest and dividend statements. As well as any other documentation of pay you have received over the year.
This is where receipts come in handy for business owners, and non business owners. Be sure to hold on to documentation and proof of purchase for items you needed to buy for your team and to keep your business running.
Student Loan Payments:
If you attended college and have student loan payments, organize those well and make a section for them.
Keep all the receipts you receive from doctors, hospitals, and labs.
While these are just a few on the list, make sure these are well organized within the folders you make as well. Don't forget to keep all these separate folders together within a filing system.
While it is up to you to keep your files organized, our professionals at Hoods Tax and Accounting are here for you in and outside of tax season.
Hooray! Now is the time to take the all deserved sigh of relief. You have completed your taxes, they have been filed, and tax season is over! So, what do you do now? Well, while you can take a breather, there are still a couple of tax tips you should keep in mind even in the offseason.
Keep Up The Organization
Just because tax season is over, it does not mean you get to toss papers around and abandon your filing system! Keep up with the organization plans you have made in order to keep documents together. Being organized right from the beginning will help your future self come next year's tax season.
If you use a database or online organization, be sure to keep track of all your data and information even if you have it stored digitally. Having a hard copy and a digital copy will benefit you if something were to happen to your electronics.
Adjust If You Must
Be sure to keep up with your tax payments if you opted to pay throughout the year. If you did not, make sure you are paying the IRS the appropriate amount by using the tax calculator on the IRS website or going to a professional.
Have An Eye On The Tax Laws
Tax laws are known to change, so be sure you are keeping up to date with how the laws alter from year to year. By doing so, you will be helping yourself stay up to date with deductibles, returns, and much more.
Here at Hoods Tax & Accounting, we understand taxes are frustrating and take a lot of energy in the peak months. In order to make those times easier for you and your money, start organizing today for next year! Our professionals are here to help you with your tax needs and questions as well!
Write something about yourself. No need to be fancy, just an overview.