There is never a more important time to be organized than tax season. It’s so important to know where all of your important paperwork is so that you can maximize your refund, or at least reduce your liability.
If you are running around looking for receipts and other important papers, now is the time to get organized for next year.
Start a file right now for 2012 taxes. Put everything in there, if you are unsure if something is deductible, throw it in there any way and you can sort it out when the time comes.
I use a file to throw all medical receipts and donation slips and the like in, but the most important thing is that you use it. If you know you will just throw everything on your desk then buy a pretty box, put it on the desk and use it for tax items only. Make sure you write what you donated on those donation slips, I know you think you will remember, but trust me, you won’t.
When it comes time to file your taxes there are many wonderful online programs that will walk you through, step by step, at a fraction of the cost of paying someone to do your taxes.
These programs are excellent. I’ve never paid anyone to do my taxes and I have all the usual things like a mortgage and a child, not to mention some unusual ones like the first time homebuyer rebate that I’m now paying back. The online tax programs can figure it all out. The best thing is if you use the same one from year to year it will import last year’s information into this year’s taxes so that is one less thing you have to look for.
Finally, make sure you keep a copy of your taxes, no matter who does them. File them year by year, I’ve heard you should keep them for ten years so make sure they are in a safe place and wont’ get tossed out. You can always get a copy from the IRS if you need it but why go through that headache, print them off and safe them yourself.