Less Tax Stress

Here's a post I wrote back in 2010 - but guess what?  Tax time is here again...

Your taxes are done!  So now what?  What documents should you keep and for how long?  The short version is this: business and personal records to keep forever: income tax returns and payment checks.  Records to keep for 7 years: supporting documents for tax returns.

Every year, take the supporting tax documents and put them in a folder or envelope marked with the year.  As you store the current documents, get rid of the documents that are 10 or more years old.  Keep all of these documents in the same place, a file box or drawer.  Keep all of your tax returns together in the same place as well. 

Keep receipts organized during the year.  The "shoebox method" certainly keeps receipts contained, but seriously...how much precious time is (wasted) spent sorting through them when it's time to get organized?  Get yourself a letter sized accordian file folder.  Label each section by category - auto, supplies, medical, etc.  As you reconcile your receipts each week or month, file them away in the appropriate category.  Guess what - when April rolls around again you'll be ready.

For a more detailed list of what to keep, Ramona Creel offers a great set of guidelines.

Got Mail?

We all get mail, and as a professional organizer, I am called upon to help people manage it.  It often ends up in a pile (or piles) on your desk, or kitchen counter, or entry table, or floor.  It can easily become an intimidating task to "process" all of the mail.  How do you handle it?    Here is a suggestion that has worked for me and my clients: set up a "mail center".

Step 1: designate a place (ideally close to the front door) where mail can be placed after it is brought into the house.  Let the family know that this is where the mail goes, and encourage whoever brings it in to place it there.

Step 2: find 2 baskets or bins, one for 'shredding' and one for 'recycling'.  Place these baskets next to or under the designated mail drop.

Step 3: find a tray for the processed mail, you can carry it to where you pay the bills/file when you're ready.

(And don't forget to get yourself a good letter opener!  Avoid paper cuts and make things easy on yourself!  Keep it right where the mail will be.)

OK - now you're ready to bring in the mail!  I know we are always doing something more important than sorting the mail, but if you want to get a handle on it, you'll need to create some new habits.

PROCESSING the mail:  As soon as you come in the door, separate important mail from junk mail, and place the junk in the shred or recycle basket.

Next, open every envelope with your handy letter opener and recycle the envelopes and filler.  Place the bills, or letters, etc in the tray.  Doing this can help you avoid missing important notices or bills because you will have seen them right away.

Your mail is now officially "processed."  Take the tray to wherever you pay the bills (your office, kitchen table, etc.)  Be sure to have a pen, stamps and return address labels handy so you can get things done in one sitting.