Reduce tax time stress with the six 'P's' of organization
Issue date: 3/15/09 Section: Business
(ARA) - Many Americans procrastinate when it comes to doing their taxes, often because they don't want to tackle the receipts and documents that have been piling up for the past 12 months. However there are a few easy steps that can make this season less taxing.
"Tax time is inherently stressful for people because they realize that they need to organize their important documents but they don't know where to begin," says Louise Kurzeka, a professional organizer who works with Smead. "In reality, tax time is the perfect opportunity to get organized and to develop a system that will work for you for years to come."
Smead, a leading provider of organizational products, developed Smead Organomics -- a free interactive Web site that offers advice and tips for getting organized with less stress.
With the tax deadline looming, Kurzeka and Smead Organomics offer the following suggestions for making this season less stressful.
1. Prepare for tax time by making an electronic checklist of documents you will need based on your returns from the last few years. Create the checklist by reviewing your tax returns from previous years and attach it to the inside flap of your tax folder. Also, organize your documents by category such as income, deductions, exemptions and miscellaneous. For instance, deductions would include mortgage interest, property taxes and residential energy credits. Exemptions could include vehicle registration and taxes, medical expenses, contributions to IRAs and student loan interest paid. By checking off the items as they are received, you will know which documents have arrived and which are still missing.
2. Purge files of monthly bills from the previous year and set up a filing system for the current year that includes receipts, credit card and bank statements, medical expenses and utility payments. It is best to shred any documents before you discard them.
3. Place current tax records and other important documents in files that are clearly marked and easily accessible. After your tax returns have been filed, place your copy of the return and all supporting documents into a secure file, preferably something with a closed top like a Smead expanding file with flap, label it for the tax year, and store in a secure location with previous years' returns. If you prepared your tax return electronically, place a disk with backup copies in the file for safekeeping.
"Tax time is inherently stressful for people because they realize that they need to organize their important documents but they don't know where to begin," says Louise Kurzeka, a professional organizer who works with Smead. "In reality, tax time is the perfect opportunity to get organized and to develop a system that will work for you for years to come."
Smead, a leading provider of organizational products, developed Smead Organomics -- a free interactive Web site that offers advice and tips for getting organized with less stress.
With the tax deadline looming, Kurzeka and Smead Organomics offer the following suggestions for making this season less stressful.
1. Prepare for tax time by making an electronic checklist of documents you will need based on your returns from the last few years. Create the checklist by reviewing your tax returns from previous years and attach it to the inside flap of your tax folder. Also, organize your documents by category such as income, deductions, exemptions and miscellaneous. For instance, deductions would include mortgage interest, property taxes and residential energy credits. Exemptions could include vehicle registration and taxes, medical expenses, contributions to IRAs and student loan interest paid. By checking off the items as they are received, you will know which documents have arrived and which are still missing.
2. Purge files of monthly bills from the previous year and set up a filing system for the current year that includes receipts, credit card and bank statements, medical expenses and utility payments. It is best to shred any documents before you discard them.
3. Place current tax records and other important documents in files that are clearly marked and easily accessible. After your tax returns have been filed, place your copy of the return and all supporting documents into a secure file, preferably something with a closed top like a Smead expanding file with flap, label it for the tax year, and store in a secure location with previous years' returns. If you prepared your tax return electronically, place a disk with backup copies in the file for safekeeping.
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