This February’s Monthly Organizing Challenge is to create a 2013 Tax Return Organizing accordion folder. Yes, I know. This is a boring topic. But, it does help if you have your reference information organized, not only for short-term use, but also for long-term use.
Let’s begin. First in tax return organizing you need to make a list of all the groups you need to gather. Here are some examples:
- W-2
- 1099-misc
- 1099-R
- Letters from Charitable Contributions
- Medical papers
- Interest from banks
- Paperwork from Mortgage company
Then, gather your papers for your taxes. Group them into piles.
Label tabs to correspond to your own tax situation. Here are some examples:
- Quicken or QuickBooks Tax Summary
- Income – W-2, 1099-misc, 1099-R
- Income – Bank interest
- Income – Distribution
- Income – Capital Gains
- Income – Rental Property income and expenses
- Deduction – Charitable deduction – cash and donated items
- Deduction – Medical Deduction
- Deduction – Contribution to an 529 plans for education fund
- Deduction – Real estate taxes paid
- Deduction – Mortgage interest paid
- Deduction – Refinanced taxes paid
- Federal Tax return
- State Tax return
- Local Tax return
That is it for your tax return organizing project. Great job you are finished your monthly organizing challenge! Having these papers organized in an accordion folder will help you keep track of all your important tax paperwork for your accountant or if you do your taxes yourselves. It will help him/her and you be able to go through your tax return more simply even in the most complicated tax return.
