Right now, you’re probably receiving tons of tax documents. 1099’s from clients, W2’s from employers, statements from loans and savings plans….all kinds of important stuff. I hear all the time that people lose documents or can’t find one piece of paper and have to file an extension. This extra document you’re filing because you can’t find forms is time you could be using on your craft!
Here’s another idea:
- Create a tax basket and place it near your front door (or wherever you sort through your mail).
- As you come across tax documents, place them in the basket. Don’t open them yet. Just know they’re in the right spot.
- On a quiet weekend day, open each envelope and review the documents to ensure your income and expenses have been documented correctly. Leave yourself plenty of time before tax day for this task. If something is wrong it might take a few weeks to receive a corrected document.
Using the “tax basket” strategy, you’ll never lose a document and will save tons of time before tax day.