While you are working on this year’s taxes, keep in mind what you can do now to make next year’s preparation easier. Even though it may be months and months away, there are actions you can take now to organize your taxes and make the process smoother throughout the year and at tax time.
• What worked well and what could be “tweaked”? If it took time to gather credit card statements, designate a “home” to keep them in one place during the coming year. Separate by card number.
• Set up specific file folders – paper or electronic – and drop or scan documents for next year’s taxes into them throughout the year.
Suggestion: Devote an easily accessible filing box or accordion folder exclusively to next year’s taxes.
• Highlight tax donations in your checkbook and on credit card statements as you check them monthly. (Suggestion: Use different color highlighters to differentiate categories such as for home maintenance and tax deductions.)
• Scan tax receipts using a mobile scanner (such as Neat Receipts or SnapScan. Makes it easy to export data into programs such as Quicken, QuickBooks and TurboTax.
Even though tax season may be months and months away, take these time-saving actions now.