Tips for Getting Your Taxes Organized

Try out these suggestions to stay organized this tax season.

With the tax deadline approaching, you have probably already received important tax documents like your W-2, 1099, and so on in the mail.  However, if you have simply thrown these documents and other important tax information in a pile to be dealt with later, you may run into some trouble as you attempt to file your taxes.  Instead of letting your taxes get the best of you, try out these suggestions to keep your filing process efficient and organized.

  • Create a File for Income Information

First, you should create a file that contains all of the income information you will need when you file your taxes.  This file should include documents like your W-2 and 1099 as well as a report of your salary, dividends, earnings, distributions, and account interest.

  • Create a File for Expenses and Deductions

If you make a lot of tax deductions, then you should create separate folders to organize the different categories of deductions (charity, medical, business, etc.).  Then, include canceled checks, utility bills, statements, and receipts that correspond with each category in their respective folder.  Your expense folder should also house your mortgage statements, investment-related expense records, medical bills, childcare costs, and employment-related receipts for gas, food, lodging, and so on.

  • Create a File for Investments

In this file, you should keep your year-end investment statement along with all the monthly or quarterly statements, purchase receipts, sale confirmations, year-end overviews, and dividend notices.  Oftentimes, you will not need all this information when you do your taxes; however, it is a good idea to have all this information on hand just in case.

Use this system to keep your tax documents organized this year.  Do you need assistance with your various insurance needs this tax season?  If so, then contact the experts at Robert J. Los Insurance Agency in Hamburg, New York.  Our dedicated team is eager to assist you with all your coverage needs today.