Are you ready? April 18th, 2022 is the due date for filing tax returns and making tax payments. Tax prep can make some people sit down in the middle of the floor and cry. Take a deep breath and read on – you are going to get through this! We are not tax professionals nor do we give out financial advice. However, as professional organizers, we definitely have some helpful organizational tips for making this a little easier. Not only do we have some great tips for you in organizing this year’s taxes, but we also have some suggestions for keeping your taxes organized all year round so that you are ready to go when tax season comes around next year!
SET THE ENVIRONMENT
Instead of dreading organizing your taxes, how can you look forward to it? Or at the very least, find peace with the time you need to dedicate to it? You need to set the environment! Create the ambiance that helps you to find motivations and focus. Find a nice comfy place that has room for you to spread out. Turn your favorite music, podcast, or show on for background sound. Get the diffuser or your favorite candle going. Prepare your favorite drink to sip while you work. This work needs to get done, so why not turn it into a good time?
COLLECT ALL DOCUMENTS
Here is a list of documents from the IRS website that you will need to file your tax return. Following this list, go through, one by one, and find every item needed for personal info, financial documents, and itemized deductions. Yes, keep that diffusor going, that music playing, and that drink hot…or cold. If you are a small business owner, check out this great blog post on tax deductions.
NEXT STEP: FILE YOUR TAXES
Now that you have all the information needed to file your tax return, you have some important decisions to make. Read more about “When, How and Where to File” your taxes. You get to decide if you are going to file yourself, or have an accountant file on your behalf. Whether you choose to file yourself, or have an accountant assist you, you have many options available to you. Here is an interesting blog on whether you should do your own taxes or hire a pro that you may find helpful in making this decision.
KEEP TABS ON YOUR TAXES ALL YEAR ROUND
Now that you have made it through this year’s taxes, it is time to organize for next year’s taxes. This is where creating a tax binder comes in handy. It does not necessarily need to be a “binder”, but could be a portable filing cabinet, a magazine holder, or a file folder on your desktop. Anything works, as long as it is always accessible to help you keep track of all the documents throughout the year that you will need for filing your taxes. You can have file folders for all the categories listed above, or choose more general categories. Then, as you come across the needed documents throughout the year, you can collect them and store them in this mobile file container. Next year, when tax preparation time comes around, you are already prepared! If you have not already done so, organizing all your documents at this time is extremely helpful. Creating a filing system is also a good idea to help you keep all your documents organized.
Do you keep a tax binder that you use all year long? What are some suggestions you have for not letting tax prep get overwhelming? Share these helpful tips and gather more inspiration in our Abundance Declutter Group on Facebook.