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In my years as a credit counselor, many clients came to the office with a shoe box tied with string or a shopping bag, all filled with credit card statements. For some, the paperwork was too overwhelming; others did not want to face the amount of the debt or the level of seriousness. Yet, once all the paper was organized, consumers had a clear plan to deal with their debt.
The same can be true for taxpayers. A majority of us really only need a few pieces of paper to file our taxes year to year. And they can fit in a shoebox (and I would think most of us purchased pair of shoes in the past year).
Step 1:
Remove shoes and tissue paper
Step 2:
Add a copy of last year’s tax return as a reference document
Step :
As you make donations to various charities or donate items to charity groups, place receipts in the box
Step 3½:
Place receipts in the box anything you think might help preparing your taxes. (It may not be deductible but better to ask than have to hunt that paper down.) Note any major events, such as college student who is (finally!) is on his or her own.
Step 4:
In January of the following year, add 1099’s, W-2, and other statements.
Step 5:
Open the box and be confident that 2007 tax filing will be easier, more accurate, and filed on time.
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