Now that the tax deadline has passed, many people tend to relax about tracking their finances. Rather than being stressed out next season, use these three taxpaying tips to help make filing your 2016 taxes easier:
1: Keep all of your tax files in one location
Use a file box or designated drawer to keep your completed returns together from previous years, and all of your other important documentation. By keeping these in a safe place, you’ll be able to access any information you may need when the time comes. Any important documents you receive throughout the year can be saved together so everything is organized and ready. This is perhaps the most important taxpaying tip there is.
2: Keep all of your receipts in a single envelope or drawer
It’s not just about important tax files, receipts are important too! Keeping receipts organized so you can easily sort through them at the end of the year is critical. Save your business related expense receipts in one area so that you can easily sort through and have easy access whenever necessary. This taxpaying tip will help eliminate the end of year scramble for your receipts!
3: Keep a log and sort your expenses as you go
For example, you can use a simple spreadsheet that records your expenses into separate categories (such as gas, travel, uniforms, etc.). Record the expense in the appropriate category and create a running total. You can also write everything down and label separate envelopes into the various expense categories. At the beginning of tax season, all of the work should be done for you! You will have your expense totals and the receipts ready to go.
Follow these three taxpaying tips to help reduce the stressful burden of filing taxes next year. And if you are still feeling stressed when tax time arrives, contact the professionals from Nationwide Tax Solutions for a free tax consultation.