Preparing for next year’s taxes doesn’t have to be a last-minute scramble

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 Preparing for next year’s taxes doesn’t have to be a last-minute scramble. By saving your bills, receipts, and supporting documents throughout the year, you can ensure that your tax return is accurate, maximize your deductions, and protect yourself in the event of an audit. Get organized now, and your future self will thank you come tax season!

Key Documents to Save

To be fully prepared for next year's taxes, ensure you are saving the following key documents:

  • Income Statements: Pay stubs, 1099 forms, rental income records, and other income-related documentation.
  • Receipts for Charitable Contributions: Donations to registered charities may be tax-deductible, but only with proof.
  • Medical Bills and Receipts: Keep these for potential deductions on medical expenses if they surpass a percentage of your income.
  • Home-Related Documents: Mortgage interest statements, property tax bills, and home improvement receipts can affect deductions and capital gains.
  • Education Expenses: Keep tuition bills and statements for student loans for deductions or credits.
  • Business-Related Expenses: If you’re self-employed, receipts for office supplies, travel, utilities, and other business-related costs are crucial for tax deductions.

How to Stay Organized Throughout the Year

  1. Create a Filing System
    Set up a system to categorize your bills, receipts, and statements by type (e.g., medical, business, home, charitable donations). You can do this either with physical folders or digital files, depending on your preference.

  2. Use Apps for Digital Storage
    There are many apps available, such as Expensify or QuickBooks, that allow you to take photos of your receipts and categorize them digitally. This can help reduce paper clutter while making it easier to retrieve documents when tax season arrives.

  3. Review Quarterly
    Rather than waiting until the end of the year, review your documents every quarter. This will allow you to catch any missing paperwork and help you stay on track with potential tax deductions or credits.

  4. Consult a Tax Professional Early
    If you’re unsure about which documents to save or which deductions you may qualify for, consult a tax professional early in the year. They can provide guidance and help you develop an effective record-keeping strategy.


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