Tax Files
By Nancy Kruschke McKinney

As you prepare to fill out your tax forms (a hard copy or via software), the first step is to get all of your tax information together. If you currently have a shoe box or accordion file with all of your receipts from the past year, you may want to consider setting up your files a little differently to make tax time easier next year. While the following list is not all-inclusive, it's a good starting point. Consider the following folders:

Personal Taxes

1. Income-pay check stubs, W-2's, 1099's, other income items
2. IRA-investments, statements
3. Schedule A Deductions
   1. Medical (insurance statements, checks, other medical expenses)
   2. Mortgage interest
   3. Real estate taxes
   4. Gifts made to charity
   5. Misc. job-related expenses that are not reimbursed by your company
4. Copy of last year's taxes

Small Business Taxes

1. Income-records of income received (income statement)
2. IRA-investments, statements
3. Schedule A Deductions
   1. Medical-insurance statements, checks, other medical expenses
   2. Mortgage interest, real estate taxes, gifts made to charity
4. Expenses-sort by categories listed on Schedule C
5. Mileage-keep a log book in your auto to track mileage
6. Copy of last year's taxes

The folders you need may differ from the list above. It is important to set up the folders that meet your needs and these may change from year to year depending on your tax situation. Keep these files in the same location keep your bills and receipts. This will make it easier for you to file the receipts and other tax items when they come in.