How to Make Tax Time Less Chaotic

Organizing your tax documents and receipts throughout the year is the key to having a less stressful tax time. Russell Barnett, a Diamond Certified Enrolled Agent, advises clients to use a consistent method on a monthly, or even weekly, basis. Your “system” can be whatever works best for you: a manila envelope, Quicken, a shoebox, or even an application on your smart phone. The idea is to keep up with the paperwork on a regular basis.

Mr. Barnett says some taxpayers are now scanning all their receipts in order to eliminate paper. If you’re self-employed and scan a business lunch receipt, make sure you note the guest and the business purpose for the meeting. Driving logs are important, too, and should be kept up daily if possible. Again, jot down the number of miles driven, the date and the purpose of the trip. Some mobile phones have great apps for this as well.