Keeping Your Tax Documents Organized

Many tax preparation companies claim they can “maximize” your refund. Whether you want to maximize your refund or lower your tax bill this year,
or want to make sure your tax documents are in order for next year’s tax season, here are a few things you can do to get your financial documents organized:
tax documents

  1. Make sure your tax withholding is accurate. If there are multiple earners in your household or you have more than one job, check in with your HR representative to adjust your withholding.
  2. Keep track of documentations for deductions and credits you are eligible for. Due to the Tax Cuts and Jobs Act of 2017, the standard deduction has increased and a number of personal exemptions have been removed. If you choose to itemize deductions, you need to keep track of your receipts and records throughout the year.
  3. Create a system for your tax documents. Whether you're storing physical documents or keeping digital copies, make sure to create folders for at least the following items: (a) income which can be categorized based on earner or source, (b) income adjustment which can include education expenses and alimony paid where applicable, and (c) deductions and credits such as childcare and medical expenses, as well as charitable donations.

For accurate and up-to-date tax information, visit irs.gov and/or consult with a certified tax advisor.