What is the Best Way to Organize Your Tax Documents?

Pepperell, NH Resident Looks to Get Organized

Keeping your tax documents and records organized can go a long way to making things easier when it
comes time to file your taxes. While the bulk of your tax forms and documents will arrive during January
of the following year, there are likely many receipts and other supporting documents that accumulate
throughout the year. Having a consistent routine for managing this paperwork, whether keeping
physical copies or electronic files, is key to ensuring that you have all of the necessary paperwork when
it comes time to file your taxes.

A Pepperell resident was frustrated with his wife’s lack of organization when it came to their tax
paperwork. Looking for some help, he asked the team at Merrimack Tax Associates for advice.

Physical Tax Records vs. Storing Them Electronically

Whether you keep your tax records and receipts as hard copies or electronically is really a matter of
preference. Whichever method you choose to collect these documents, the key is to be consistent in
this. When opting for physical copies, be sure to keep everything in one central location or folder. If
paperwork arrives electronically, print it out immediately and store this with the rest of your
documentation. This will reduce the chance of forgetting about the item and scrambling to find it at the
last minute. If an electronic format is better suited for you, be sure to keep the files in one central
location on a computer or hard drive and back this folder up regularly.

Receipts are Critical for Self-Employed Individuals

For self-employed individuals, keeping a record of their receipts and expenses is critical. Not only will
this mean that you are able to take advantage of all the tax deductions that you are entitled to, but you
will also be covered in the event of an audit.

Keeping your receipts and tax documents organized throughout the year will go a long way to making
filing your taxes easier. The couple in Pepperell have devised a system together to collect and store
their paperwork throughout the year. They can expect next year’s tax filing to be a smooth process as a
result.