How can you make next year’s tax time less stressful?
Create two files in your filing cabinet called “Current Year’s Taxes” and “Last Year’s Taxes”.
Current year’s tax file
This is your catch-all file for anything you will need for filing taxes such as:
- Donation receipts – place copies of your checks, donation thank you letters, or even hand scribbled notes as reminders of the donations you made. Include the receipt if you donated items you purchased.
- End-of the-year forms such as W2s, mortgage interest statements, etc. File them immediately when you receive them so they don’t get lost in a pile of paper.
- Any other information you will need for filing your taxes.
When it comes time to file your taxes, everything you need can be found in this file. No more hunting around for receipts or trying to remember what donations you made throughout the year.
Last Year’s Tax File
Keep the past year’s tax folder for easy reference when filing your taxes.