How to Organize a Home Office for Filing Taxes With Receipts

Keeping track of receipts throughout the year is crucial to accurate filing come tax time.

Tax time is stressful enough without having to perform a mad search for all your relevant receipts. A dedicated filing system in your home office is an ideal solution for keeping your tax documents organized and on hand. With a well-defined system, you can ensure that your important receipts are saved throughout the year. When April comes around, you will be prepared with all of the appropriate receipts, and filing your taxes will be easier.

Things You'll Need

• Accordion file
• Labels

Instructions

1. Identify the types of receipts that you need to hold on to. Medical receipts can often be used for a deduction if you have significant expenses. Hold on to these even if you don't think they'll amount to enough, since you can't anticipate the additional expenses that may hit you later on. Receipts for charitable donations are important as well, as these are tax deductible. If you are self-employed, you may need to hold on to a myriad of other receipts for business-related expenses.

2. Buy a small accordion file folder for your receipts. Label each section of the folder with a different category. Leave at least one section of the folder empty for miscellaneous receipts. This is where you can stash receipts that you're unsure about, but want to hold on to just in case.

3. Plan a system for getting your receipts from the store to your file folder. Tossing a receipt in the bag along with the purchase is the least effective way of keeping tracking of it on the way home. Get into the habit of placing receipts in your wallet or a specific pocket of your purse. Place them somewhere that they can't fall out of easily.

4. Empty your purse or wallet of receipts on a regular basis. Some people may find it easiest to do this as soon as they get home. Others might prefer to empty and sort once several receipts have accumulated. Find a system that works for your lifestyle and stick with it.

5. Store your receipt file in a safe place, out of reach of pets and children. This might be in a dedicated drawer or on a shelf in your home office. Replace the file in the same place every time you use it.

References

• Smart Woman: Create a System to Organize Receipts for Next Year's Taxes
• MSN Money Central: Organize your Financial Life
• Thrifty Fun: Organizing Tax Receipts