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- Where
do we put 2007 tax papers until we do our 2007 taxes so we don’t lose
anything?
Even
if we use on-line banking, there still is some paper to keep track
of for tax purposes. Create a Tax Papers Collection Folder for 2007.
Choose one distinctive large folder, portfolio, accordian file to
keep everything in one place. Start with the 2007 tax documents
that come in the mail. The first tax-related document is often the
NYS Tax forms. Put the NYS tax forms in your 2007 Tax Folder and
put the folder where the mail is sorted. As documents come in (W-2's,
interest and dividend statements) put them in the tax folder.
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What else goes in it?
Your
2007 car mileage journal (if you track mileage), your 2007 checkbook
registers, receipts for charitable contributions, your business
summary, etc.
Once
you finish your taxes, the contents of the folder gets filed under
Taxes 2007 with copies of your returns. Prepare online? Copy your
files to a CD and File under Taxes 2007.
- Change
your check book register every January 1!
Regardless
of where you are in the check register, start a new register every
January. Separate your checking account records by year. Put the
2007 register in your 2007 Tax Folder. Start a new 2008 check register.
- Organize
now for 2008 finances.
A.
Remove all files related to the 2007 tax year and store them with
2007 tax files. Label new folders for 2008. Example? Remove the
file labeled “Credit Card receipts 2007.” Create “Credit Card receipts
2008.” Don’t be cheap – financial organization is important. Get
new folders each year to keep things simple.
B.
Create a file for each tax deduction category, such as Charitable
Receipts. Lots of paper? Use an accordion folder for each category
to be sure you have enough room. Or purchase an A-Z multi-pocket
accordion product and label each section to suit your needs. (Medical,
charitable, travel, business etc.)
C.
Monthly statements: save by generic category, such as bank statements,
investments. Start general and get specific only if you need to.
Experience is the best teacher. Keep it simple. Most people have
too many categories. File weekly if you get a lot of tax-related
papers to file; monthly if you don’t.
©
Copyright 2007 Helen D. Volk All Rights Reserved
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