It’s tax time! Unfortunately that means a lot of work for most of us as we gather our tax information and actually do our taxes.
But it doesn’t have to be a chore. Years ago I discovered a method for gathering tax information that has worked really, really well for me. It’s simple and effective – almost effortless.
All you need is a file folder. Label the tab with the tax year. On the front of the file, start listing all the information you need in order to do your taxes. You can write it on there any way you want to – there’s no right or wrong way.
Then put the file folder in a visible location. I put mine on my desk next to my computer.
As the information starts rolling in, I record it on the file folder and put the supporting documents in the file. A checkmark next to the item means the supporting document is in the file (some of the supporting documents are on-line).
A week or so before I’m ready to do the taxes, I check the folder and track down any information I haven’t received or completed (like our business accounting – no one sends that to me – I have to do it myself!).
When I’m ready to actually sit down and do the taxes, everything is there!
The biggest benefit to this system is that next year I pull out the previous year’s folder and copy the information onto the new folder. The only way it could be any easier would be if someone else did it all for me!
How do you gather your tax information?