Tax Time Tips

It's the first of March and the inevitable deadline is now lingering. If you haven't done so already, it's time to get your tax related documents together. Here are a few tips to help you navigate through the chaos:

• Keep all important tax related documents in a file labeled 2010 taxes. After filing, keep your return in this file permanently.
• Resist the rapid refund urge. Instant refunds are really short term loans and they're expensive.
• Invest in accounting software such as Quicken. It's an easy way to categorize income and expenses. There is even a free online version.
• Don't spend too much time shuffling through piles of paper, the internet has made it easy to track down missing statements and forms.
• keep a yearly charitable contributions file and save every receipt from donations made. If your records aren't organized, you can miss out on important deductions.
• Here is the Records Retention Schedule our organizers use to help determine how long to keep documents. But always defer to your accountant's recommendations first.
• Get a good system in place for 2011 now. Create files by following what you had categories for in 2010.

Of course, Chaos to Order can help you navigate through your sea of tax receipts and help put things in order.