It’s that time of year again. Perhaps you’ve spent a few recent Saturdays compiling information for your tax returns. Whether or not you are the one preparing the actual returns, you still have to gather all of the receipts, documents, and data needed for this annual chore.
Many people panic, around April 1st, when they realize that tax day is, once again, April 15th. It has a way of sneaking up, doesn’t it? Avoid going into full hyperventilation mode by putting systems in place to avoid this flurry of activity each tax season.
As 1099’s, W-2’s and other important documents arrive in your mail box, do you have a safe place to store them until it’s time to file your returns? I keep a hanging file in my file drawer labeled “Current Tax Year Info” and this becomes the home for year-end statements as well as giving receipts I get throughout the year and other receipts I think I might need come tax time.
Be sure to check with your tax advisor/accountant as to how far back you need to keep records. And be sure to carefully shred any items no longer needed.