3 Ways To Get Organized For Tax Season

3 Ways to Get Organized for Tax Season

Tax season. It’s the dreaded time of year when everyone scrambles to either scrape up paperwork or frantically find an accountant that they can outsource their filing to. Even after you file, situations may arise throughout the year that require you to provide your tax information, such as applying for a loan. 

It is vital that you make sure to keep your tax info in a safe and accessible place so that you can immediately pull it up. Here are three ways to organize and be prepared for tax seasonso that you never have to pull a last-minute scramble ever again.

1.Storage Bins Galore

For anyone who has read or watched Marie Kondo, you know just how essential it is to organize every item in your home, including loose leaf paper and files. While much of today’s paperwork is delivered and filed online, some companies are still very old school and will insist on mailing you a hard copy of your W2. It is beyond easy to lose paperwork, and when it comes to official documents, the process of replacing them can take ages.

Late filing can often incur a late fee, so you do not want to be in the position of waiting for replacement paperwork. To avoid this, purchase storage bins, file drawers, or even a filing folder to keep in a safe place that holds ALL your important documents. These include passports, social security info, birth certificates, leases or deeds, and you guessed it, tax forms. You won’t be sorry!

2.Keep E-Copies on Your Computer

If you do happen to have hard copies of your W2 and tax information, immediately scan it and store it in a safe place on your computer. Label it in a way that will be easy to recall if you need to find it in your e-files for any reason. If you happen to lose your hard copy, it will be easy to replace it with a saved copy on your computer. 

Likewise, if something were to potentially happen to your computer, you can retrieve it through software like the iCloud or, if you used an app to scan it such as Tiny Scanner, a copy may still be on your phone. However, make sure to password protect all of your devices, both phone and computer, to ensure optimal confidentiality. 

3.Tax Software

These days, most people tend to use tax software such as TurboTax to perform all of their tax season needs. It’s quick, efficient, user-friendly, and safe. If for some reason you happen to lose your paper copy and cannot locate your saved e-file, your tax software will have stored a copy from each filing year on your profile. 

This is also helpful in case the IRS makes a mistake on their end or has to contact you for any reason regarding your filing. The tax software covers all bases when it comes to filing and accounts for even the most specific of situations. You will have not only a copy of your filing, but a copy of each section that calculates your return as well. 

Conclusion

There are many ways to get organized on a day to day basis. But it is very important to keep copies of everything you can when it comes to your taxes. If you plan on going back to school, need a loan, want to take out a mortgage, or any number of other things, you may be required to quickly find records of your tax information. Act now to save yourself the stress of later.