6 Ways to Get Organized for Next Year’s Taxes

Today is tax day in the U.S.

I am always amazed at how many people wait until the last possible minute to file. It is estimated that 30% of Americans file their taxes in the last two weeks before the deadline.

That is some serious procrastination, which leads to much unneeded stress and life friction.

Did you wait until the last second? Or are you among those already relaxing while others scramble to complete their tax returns?

Getting Ahead of the Tax Deadline

I am not rushing to file my taxes. In fact, I have had my State and Federal refunds for a couple of weeks already.

I like to get my taxes done at least a month before the deadline.

This approach is much easier, and involves much less stress. This is especially true when you discover that a company or bank hasn’t provided a document that you needed.

“Are you rushing to get your taxes done ahead of the deadline?”

It’s too late to get ahead of this year’s tax deadline, but you can start on next year. In fact, the best time to start preparing for next year’s taxes is immediately after you finish this year’s paperwork.

Here are 6 Ways to Get Organized for Next Year’s Taxes:

1. Start Filing Now – Start a file today for next year’s taxes. While you are scrambling to finish last year’s taxes, you are already missing the opportunity to capture this year’s receipts and papers. Will you be able to find a receipt from the beginning of this year when you get to next January?
2. Put Documents Where You Will Find Them Again – Starting a file today is only going to be helpful if you can find it again come next year’s tax season. So, make sure that you designate a clear and permanent home for your future tax folder.
3. Scan Documents – Papers tend to disappear and float over time, even if you have a dedicated folder. I prefer to scan all documents using my Scansnap scanner. I store them to a specific location and ensure that I back them up, as well.
4. Capture Receipts – Random receipts are the hardest to capture. Sometimes they seem to evaporate even before you have left a store. Capture them as soon as you can. For physical receipts, take photos of them and store them directly to Evernote. For email receipts, print them to PDF into your scanned docs folder (see #2) or simply forward the email directly to Evernote.
5. Back It All Up – Just as physical documents can be lost, so can electronic ones. Make sure that a laptop crash or other error doesn’t erase all your hard work. Back up your documents to a safe location or the cloud. I use a dual backup, locally to an Apple Time Capsule and to the cloud via CrashPlan. Both of these are automatic and don’t require any action on my part once set up.
6. Ask Tax Questions Now – Accountants are hard to find the final weeks before tax deadline. However, just after tax season is a great time to ask those tax planning questions for next year. Don’t wait 9–12 months to inquire. Instead, start planning and get those questions answered when you can  call an accountant and they will pick up their phone.

Start Now… for Next Year’s Taxes

If you are still struggling with this year’s taxes, you’ll have to dig yourself out of that hole.

However, you can start now for next year. Start today to capture documents, receipts, and papers for next year.

You’ll be glad you did… come next January.

Question: Do you wait until the last possible moment to file your taxes? You can leave a comment by clicking here.