is to be organized from the beginning.
This is a new year, so start off your 2008 taxes now. Here is a very simple, very cheap way. I will take you through it step by step.
You will need the following:
One large 3 ring binder
25 or more plastic page protector sheets
Put the page protector sheets in the binder, with the opening on the top. (so you don't use items).
Label the spine of your book 2008 taxes.
Label your page protector sheets. You can use magic marker, masking tape or type and tape it on. Label your sheets according to your particular tax needs. To give you an example, here are a few of my pages:
Medical visit receipts
RX receipts
Vision/Hearing/Dental receipts
Interest earned statements
Rental expenses
Rental income
IRA
401K
auto sale taxes
personal prop taxes
real estate taxes
W2
educational & training expenses & milage
donations
interest paid
health insurance and union dues paid
uniforms
farm expenses
receipts for home improvements re: energy
sales of stocks and bonds
If in doubt-put in a misc page also for receipts you may question.
When you get your 2007 taxes finished, put a copy of them in this book also, for next year. You can put them in the pockets on the cover, or use a hole puncher. You will need them for ref for 2008 taxes.
Now the most important thing, is to actually put your receipts in the book as the year progresses. I had been doing this in the file cabinet in files and envelopes, and it was sometimes "out of site, out of mind". Then I would file a months worth at once.. Now, this book sits in the office on the bookshelf. I see it daily as I am in the office.
At the end of 2008, add up your receipts in each pocket and put your total in that pocket.
When you are ready to get your taxes done, simply take the entire book to the tax preparer. You will be all organized. If the tax person has any questions, you have it right there.
The best way to get your taxes organized
January 19th, 2008 at 08:21 pm
January 19th, 2008 at 08:49 pm 1200775778
January 20th, 2008 at 06:14 am 1200809666
Yes, it costed like $10 for the binder, but being able to use it every year, and keep things organized has made it well worth the money to me.
January 21st, 2008 at 07:39 pm 1200944395