Attachment
Keeping orderly records for tax-filing purposes is perhaps just as important as making sure you claim the appropriate tax credit, deduction, or filing status. Without the right paperwork, tax filers could miss out on important money-saving benefits for the 2008 tax season, like a $7,500 credit for first-time homebuyers, or tax incentives for businesses.
“Getting organized this spring – in time for tax season – could literally mean more money in your pocket,” said NAPO President Standolyn Robertson. “Not only does better organization save the time of searching for misplaced documents, but it could also yield higher income tax refunds when filers have all the necessary documents in hand.”
NAPO offers a step-by-step guide to getting organized for tax season
Step 1: Designate a place for all your tax documents
Disorganized rooms can be distracting and lead to lost documents and wasted time looking for them.
Step 2: Sort, file, save
For each potential tax record, ask yourself the following questions:
· Do I need to keep this?
· If I need to keep it, what file does it belong in?
Step 3: Categorize your records for tax purposes
Be sure to keep records and a separate file for papers you’ll need for your tax return. Don’t miss out on claiming expenses and deductions because you misplaced or don’t have a copy of a key invoice.
· Sort your paid bills by subject, such as; office expenses, home improvements, health expenses, donations, credit cards, investments, etc.
Step 4: Assemble your records for this year's return
With your files now in order, it’s much easier to gather what you need for your 2008 return - whether you are preparing the return yourself, or sending your documents to a tax preparer.
Step 5: Schedule time to stay organized for future tax seasons
The best way to get and stay organized is to schedule a regular time and day each week, or each month, to sort through new documents. A good rule of thumb is to schedule about one hour a week for record-keeping.
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