Get Organized for Tax Season

The year’s first month has come and gone, allowing us to recover from the holidays. Next comes another stressful time of the year. It is a time of gathering documents and counting up your children. It is a time when Mothers who gave birth in early January may wish they had given birth on December 31st instead. Do you know what time it is? I’m talking about tax season.

Getting ready for taxes could either be painful or a time to celebrate—depending on whether you owe the IRS money or are getting a refund. Do you know how to organize receipts for tax categories? Do you know about things like depreciation recapture, and the tax this involves? Have you been keeping a tax organizer binder? If not, now is the time to get started! Let’s dive into your tax prep checklist.

Table of Contents

How do I organize my taxes?

I’ve got your tips on how to organize tax returns here! I’m a fan of tax organizer folders, physical and digital, and keeping everything together.

If you’re wondering, how much do you have to make to file taxes, the minimum income for 2020 for a young married couple filing jointly is $24,800.

I’m getting ready for taxes season and gathering documents for taxes, and I hope to get a nice refund this year. Baby H is a good deduction. I also still have myself set as “single” on my tax paperwork with my job since that withholds slightly more taxes out of each paycheck, but it means we will not owe when we file our tax return. I like to file taxes as early as possible and then move on to other more interesting things that happen in April – like my birthday.

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Will you be filing a simple tax return to the IRS? Or do you need help with tax organization worksheets?

Some people will have a simple time of this as they may rent rather than own a house, may not have dependents, and so will only have their income documents. If all you have is a W-2, you may be able to e-file a 1040 tax return for free quickly.

We definitely have more complexity than a 1040 filing, so I needed a tax organization system. In this post, I wanted to share with you a checklist of the types of documents you will need to organize before you can finish filing your taxes.

Why is organization important when filing your taxes?

There are many reasons why organization is important when filing your taxes. Perhaps the most important reason is that if you are organized, you can find all of your tax documents and receipts when it comes time to file your return. This will help to ensure that you don’t miss any deductions or credits that you may be entitled to.

Another reason to be organized when filing your taxes is to ensure that your return is accurate. If you have a lot of receipts and documents scattered around, it can be easy to make mistakes when filling out your return. By being organized, you can avoid costly mistakes. Create a filing system that makes sense to you. You may want to organize your documents by type (e.g., income statements, deductions, credits) or by date received.

Finally, having a good tax organization system can save you time when it comes to filing your return. If everything is well-organized, you won’t have to spend hours searching for misplaced receipts or documents.

How can I save my tax documents at home? Where should I store my tax documents?

Here are a few tips on how to save your tax documents at home:

1. Create a backup system. Ensure you have a backup system in place in an emergency. This could include storing your documents in a safe deposit box or scanning them into a computer.

2. Store them in a secure location. Ensure you store your documents in a secure location where thieves or fire can’t easily access them.

3. Label them clearly. Label your documents clearly so that you can easily find them if needed.

How to organize old tax returns

Gather all of your old tax returns and any associated documentation. Once you have everything in one place, you can begin to organize them chronologically. Be sure to store your returns in a safe place where they will be easy to find in the event that you need them again.

How long should you keep your tax returns before destroying them? Typically 3 years but you might want to keep certain important documents longer, such as home purchases, stocks, etc. You also want to keep the documents for up to 7 years if you claim a loss.

Getting Organized for Tax Season, a Checklist of Documents to Gather for Taxes

Get ready to put together your tax organizer binder with this checklist! You’ll start by gathering your family details, including the social security numbers for yourself, your spouse, and your children.

You may also need your tax return from previous years. You also want to have your bank information ready for direct deposit of your refund, if you’re getting one. Place all these paper copies into your tax document organizer to be ready for preparing your taxes.

Keep reading for a tax preparation checklist printable you can download and add to your tax organization binder.

Income Documents are where you start with gathering documents for your tax return.

W-2 wages from your employer.
1099s for any other miscellaneous income.
Or unemployment.
Any blogging income you have tracked or income from any other businesses you run.
Any stocks sold.
Did you win anything? The value of prizes is taxed.
Receive alimony?
Do you have a rental property and earn rental income?

Do you own a house? Have student loans? Interest paid on loans becomes a deduction on your tax return.

1098 from your Mortgage company, including interest paid.
Student loan lenders will send you a tax form with your interest paid.

Taxes Paid can be deducted as well.

Did you pay property taxes not already itemized on your mortgage statement?
Did you buy any large-ticket items?

Do you have children?

Children are a huge deduction.
Childcare expenses can also be itemized on your deductions, so be sure to get a statement from your daycare.

What’s the best way to store tax documents?

Do you use a physical tax organizer folder or a digital one? Personally, I’m a fan of electronic files. I like to have one folder on my computer where I download PDFs of all the relevant documents and give them a meaningful file name. But I know many people are fans of printouts. If you’re going to a tax preparer, you also want a printout of everything.

You can get a tax organization binder (a regular binder with dividers or folders) or a large accordion folder with sections. There you can organize by type of document, as per the list above (your sections can include income, loans, child care, other deductions, tax receipts folder, etc).

Here is an example of a great accordion binder for all your tax documents.

Should you use tax software to file your tax return?

Tax software is very helpful because it asks a series of questions that help identify other documents you may have missed. I have filed our taxes in the past using software, and I found it very easy to follow and complete. This was when we had straightforward documents and figured we could figure out the rest.

I’ve always used the H&R Block software when I DIY’ed our taxes. I like that they have audit support, and you can ask questions while still being able to do everything from home. It’s really easy to use and asks you questions along the way to ensure you’re including everything required.

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When to use a tax preparer?

I recommend going to a tax preparer if your return will be super complicated. While the DIY tax route is a great option for very simple returns, it is always best to go to a professional if you have a business or many items you plan to itemize and deduct. You will be served best by an official tax preparer who understands the ins and outs of tax laws and can help you claim all applicable deductions. You also might consider using a tax preparer if you’re doing your taxes for the first time.

If you’re wondering how to organize tax documents for the accountant, it is the same way as getting organized to file your taxes. You collect all the documents and organize them in a folder or binder. Then, rather than typing in all the details yourself, you provide them to your tax preparer, and that person reviews the documents with you and enters the data into their software.

If you don’t know how to choose a tax preparer, let me help! I’ve also used H&R Block in person for our taxes and found that route to be quite helpful. They ask you a lot of questions and can help clarify your specific needs.

Grab this Tax Preparation Checklist Printable!

Grab this tax prep checklist 2022 printable to help you get organized for tax season! This tax organizer checklist will help you plan how to categorize your taxes and work on organizing receipts for taxes.