Taxes are never fun. We have to sift through tons of paper to figure out a bunch of numbers while we cross our fingers we don't owe too much in the end. There are a few weeks left this year to get taxes prepared, so let's make it as easy as possible.
1) If you ever were audited, and would need that information to prove something, keep it. During the year, keep these papers filed by vendor. At the end of the year, when you're working on taxes, move the needed papers to your file for the tax year. Chances are you only need the year-end statement or something similar.
2) Try going digital for next year. The IRS accepts digital documents now. If you find it easier to keep track of records in the cloud, in your hard drive or through financial institution's websites, do so. Some sites will even break down your expenditures by type at the end of the year.
3) Get rid of everything else from last year. If you won't need it for tax reasons, ask yourself why you'd ever need it? If you don't have a legitimate reason, recycle or shred the paperwork.
4) If you feel like reading all the details, you can read through the IRS's suggestions on how long to keep different kinds of paperwork.
5) When all else fails, contact a certified tax preparer or accountant!
