Getting Ready is the Secret of Success

By Tricia Barham

"Before everything else, getting ready is the secret of success." Henry Ford

If you want your taxes to be a breeze there are many simple things you can do.  You just need to be consistent and a little organized. Are you a computer person or a file folder person? Either one will work, but do what you are comfortable with. If you are a computer person, it helps if you have a scanner to scan important documents.

On January first it is time to start. You need a system. Something that works for you, however your brain works. Make your files (either on the computer or real files).  Label them something simple so it is easy to manage. If you want to save receipts for your dinners with clients make file labeled "dinner," if you want to save items related to your car, make a file labeled "car." You can have sub-folders if need, like "gas" for your gas receipts or "mileage" if you need to keep track of your mileage on your car. 

It is always a good idea to consult a professional tax person so you are sure to save the right documents for what you want to write off.  There are probably several items you would never even dream of that are tax deductible. For example if you are unemployed and your job hunt takes you away overnight you can write off your gas, food and hotel. Save all those receipts and put them in your folder marked "job hunt."

Stay consistent all year with your system. If you start out strong for the first few months and then throw any and all receipts in a shoe box for the last few months it will be a nightmare come tax time. Keep organized, stay consistent and you'll be able to celebrate tax time with a big return check!