Expert Q&A
Share on Facebook
Tweet this
Share on LinkedIn
Email to a FriendWhen should I start getting my tax records together for filing?
As what the previous professional has stated. However, if you are like most people the time frame is usually Jan- March being that April is the deadline.
Your tax record should always be ready. update them daily, weekly and monthly. Keep an accurate records of all the information you will need for filing. Have a specific folder for your tax records
I suggest that you should get your tax records together and file them on regular basis. Setting up a separate tax file can help us stay organize, save time and trouble. We can organize our files under following categories:
I recommend to my clients that they practice collecting tax documents all year long. This eliminates searching for documents at tax time. Get a file folder, or large manila folder, or even a basket and collect any document (receipts, etc.) that may be a possible tax deduction. If you have the time, at the end of each month you can sort by month or expense type. But if that is not possible, just drop them in the basket so that everything will be in one place at year end.
This should be on an ongoing basis. You should create an organization system from the day 1. To do so, it can be simply purchase a sorter file holder (you can find one for under $10), label each divider from income, to bank statements to properties, etc. Then all you have to do is to put any related documents into the holder during the year, then by end of the year you are done without stressed about it.
Candy Yu
As a rule, sooner rather than later.
If you have had any significant changes during the year that might affect your tax situation, it’s wise to make an assessment before the end of the year. Such changes might include (this is not meant to be an exhaustive list):
- a change of job (or retiring from a job),
- a child turning 17 (ineligible for the child tax credit) or 14 (ineligible for the dependent care credit),
- a child or other family member starting or graduating from college,
- getting married or divorced,
- buying or selling a home,
- taking money out of a retirement plan
I tell my clients to start on Jan 1 for that year. That way you are not scrambling to find the receipts and proof in a frenzy. If you prepare all year, you need only to gather up your file, and go to your tax preparer ready to go.
So to answer your question, it is never to early to start.
