How To Organize Yourself For Tax Season

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Although the tax deadline is a few days later than usual this year, it's still important that you get yourself prepared to file early on. By getting organized ahead of time, you can reduce the chances that you'll feel frazzled and overwhelmed the day before you meet with an accountant to submit all of your paperwork, and you can prevent yourself from having to deal with harsh penalties that are applied to late returns.

So what's the best way to get ready? Below, we describe a few strategies that you can use to put yourself in a good place:

Review last year's information: The best place to start is by looking at last year's tax return and/or files that you used to determine which documents are going to be of importance. Chances are anything that came in handy last year will do the same this year, so instead of having to dig through paperwork a mile high at random, figure out which exact documents might come into play so that you can begin looking for those first.

Set deadlines: Even though there is a universal tax deadline in place, set some other deadlines for yourself to help you stay on track. For example, set a deadline for when you need to make an appointment with an accountant (if this is the method you choose to file), then set another for when you need to have all of your paperwork in order. 

Choose hard copy or digital: While some people prefer to have everything written out by hand and stashed away in physical folders, others have taken to the digital realm and prefer to keep copies of documents and the like on their computer. So, decide which works best for you and then begin setting things up. If you prefer to be hands on, consider getting a filing cabinet where you can neatly organize receipts, bank statements, paychecks and other similar items. On the other hand, if you prefer to work in front of a screen, set up some digital folders or a spreadsheet to help you keep track of expenses and financial documents.

Find a work space: Regardless of whether you like to look at hard copies or digital copies of documents, you need to have a clear space to work in when it comes to getting things ready. With that said, find a space in your home that is relatively free of distractions and clutter so that you can concentrate when working. When you sit yourself down in a high-traffic area such as your dining room, it can be pretty easy for physical copies to get lost with the mail or other general paperwork, and it can certainly get noisy.

Considering that missing the tax deadline is something you want to avoid, it's extremely important that you begin getting organized now! Which of the above strategies will you use to do so?

Here at American Investment Planners LLC, we understand that tax season can be a pretty tricky one, which is why we want to help you get everything sorted out on time! For detailed information about our tax related services, please call (516) 932-5130 or email info@americaninvestplanners.com.