Every year I say I am going to do better and get my paperwork ready for the Accountant in January. Why should this year be any different?
Well for one thing, I started a Blog Business in 2020 and that added additional paperwork and accountability that I have not had since retiring in 2007.
As I was looking over my checklist that I use every year regardless, I thought maybe I would share this with you all. Maybe it will help you as much as it helps me but more so if you are going to an Accountant there will be no phone calls, running back to the Account and possibly leaving very important deductions or income documents out of that years taxes. This can cause you to have a Tax Audit and I speak from experience, it is not a fun time and very scary. Who wants to meet the “DREADED TAX MAN/WOMEN”?
Here are some tips for organizing your tax records:
- Gather all tax-related documents: W-2s, 1099s, receipts for deductible expenses, etc.
- Use a filing system: Paper or digital, use a system that works for you to keep all tax-related documents in one place.
- Keep records for at least three years: The IRS typically has three years to audit a tax return, so keep records for at least that long.
- Keep track of charitable donations: Keep receipts and records of donations to charity.
Additionally, consider the following tips for organizing your tax records:
- Create a separate folder for each year’s tax documents
- Label each document clearly and date it
- Keep records of major life events such as buying a house or having a baby
- Keep records of any estimated tax payments made throughout the year
- Store important digital files securely, such as by using a password-protected cloud storage service.
Income Tax Checklists
I hope this was helpful to you all and if so or even if not…. all I ask is that you “pay it forward”. There is always someone in a quandary at tax time and it might just be that document that will help to “talk them down from the ledge”. LOL.
Thanks again for being a part of The City Cottage family. I love when we can visit together.
Until next time….
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