|
Article - Tax Time
It’s not too late to organize your information for
your this years taxes and set up a tax system for next year.
This year
1.
Pull all of the data you received into one location.
2.
Create a file folder to hold all of this data. If your taxes are
simple, this may be enough. If your taxes are more complicated,
continue to step 3.
3.
Sort the data into groups. For example
* Schedule A items (medical and
dental)
* State tax information
* Real estate tax information
* Mortgage
information (1098)
* Charity information
* Schedule C items (profit or loss from a business)
Create separate file
folders for each Schedule, or for each category on each Schedule. If you
are a small business owner, here are some of the folders you might also
want to create:
* Advertising
* Contract Labor
* Legal and professional fees
* Office expenses
* Taxes and licenses
* Travel, meals and entertainment
* Other expenses
4.
Complete the actual tax forms and schedules
5.
File all pieces of paper used to file your tax return, along with
your copy of the tax return itself, for future reference.
Organizing this data will reduce the time you or
your accountant spend completing your taxes. It will also reduce the
stress of tax time.
Next year
1.
Create the same folders for 2006 tax data.
2.
File the data as it comes in throughout the year, rather than waiting
until tax time! Include documents, receipts, statements, notes,
etc.
Next year tax time will be a breeze. |
