Your tax information is important to have at the ready so that when tax season comes around again, you are able to quickly and efficiently get the information you need. This all starts with having a system of organization that will help you throughout the year and help you find the information that you need when you need it. Here are three ways you can get your tax information organized right now.

1- Have a Filing System

One of the easiest ways to keep your tax documents organized is by having a dedicated filing system just for your tax documents. This can be as simple as using a drawer or filing cabinet for just your tax documents. That way, you will know exactly what is in there and where you can go when you need to find a specific form or receipt. It is also a good idea to make sure that your files have a system, such as keeping like documents together or keeping documents gathered by tax year.

Since tax documents often have sensitive financial information, it is also important to consider how you will keep your filing system safe before you start organizing.

2- Create Digital Records

Another easy way to get your tax records organized is by creating digital copies of your records. It is as easy as scanning all of your documents and keeping them in a file on your computer. Then, when you need to find information or a specific document, you can simply call it up on the screen. You can also use a variety of applications to organize your files how you want them. In many cases, digital records can serve as proof for audits, but it is always best to check with your CPA to understand whether copies or original documents can be submitted for specific situations.

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Like a traditional paper filing system, you will also have to consider the safety of your data when you create digital records for your taxes. Make sure that you are using updated antivirus software, that you have a backup file, and that you can lock your tax documents in a password-protected folder for your safety and security.

3- Plan Ahead for Future Deductions

One of the best ways to stay organized when it comes to tax season is to be prepared ahead of time for what you may need. You don’t want to throw away receipts that could have been used for business deductions months later. Understand what types of deductions you can take for personal and professional reasons, then make sure to save any receipts that may be needed to qualify for any deductions or credits for that tax year. Your CPA may also be able to help you determine which activities could count towards a deduction and which cannot.

While taxes may seem daunting for many taxpayers each year, with the right plan to keep your documents organized and stay organized, you can make sure that the next tax season will go smoothly for you and your tax professional.