A Simple Way to Save on Taxes
- Get a file folder.
- Write Taxes and the year on it.
- Keep the folder where you read your mail and pay your bills.
- Every time you get a piece of paper that could be conceivably tax related stuff it in the folder.
Why is this so important?
We Forget
The donation we gave to the Boys and Girls club. The car tax we had to pay. The medical bill that insurance didn’t cover. There is no guarantee that everything you put in the folder will help you on your taxes, but if you don’t remember you will not get the deduction.
Finding Documentation Takes Time
One of the most grueling tasks associated with doing taxes is gathering the documentation to put your taxes together. This is true whether you do your taxes or hand them off to someone else. Your time is valuable, and simply stuffing your documentation for taxes in one place drastically reduces the tax time paper hunt.
Some of you are very organized. You have a sophisticated filing system and you instantly know exactly where everything is. Obviously this entry doesn’t apply to those of you so lucky and disciplined. Everyone else should go get that folder now!
How does this save me anything?
It saves money by making sure that you take advantage of all the deductions you are entitled to. It saves time by eliminating the paper hunt.
Go get that folder and save some time and money for your next go around with the tax man.