Reduce tax time stress with the six 'P's' of organization

(ARA) - Many Americans procrastinate when it comes to doing their taxes, often because they don't want to tackle the receipts and documents that have been piling up for the past 12 months. However there are a few easy steps that can make this season less taxing."Tax time is inherently stressful for people because they realize that they need to organize their important documents but they don't know where to begin," says Louise Kurzeka, a professional organizer who works with Smead. "In reality, tax time is the perfect opportunity to get organized and to develop a system that will work for you for years to come."

Smead, a leading provider of organizational products, developed Smead Organomics -- a free interactive Web site that offers advice and tips for getting organized with less stress.

With the tax deadline looming, Kurzeka and Smead Organomics offer the following suggestions for making this season less stressful.

1. Prepare for tax time by making an electronic checklist of documents you will need based on your returns from the last few years. Create the checklist by reviewing your tax returns from previous years and attach it to the inside flap of your tax folder. Also, organize your documents by category such as income, deductions, exemptions and miscellaneous. For instance, deductions would include mortgage interest, property taxes and residential energy credits. Exemptions could include vehicle registration and taxes, medical expenses, contributions to IRAs and student loan interest paid. By checking off the items as they are received, you will know which documents have arrived and which are still missing.

2. Purge files of monthly bills from the previous year and set up a filing system for the current year that includes receipts, credit card and bank statements, medical expenses and utility payments. It is best to shred any documents before you discard them.

3. Place current tax records and other important documents in files that are clearly marked and easily accessible. After your tax returns have been filed, place your copy of the return and all supporting documents into a secure file, preferably something with a closed top like a Smead expanding file with flap, label it for the tax year, and store in a secure location with previous years' returns. If you prepared your tax return electronically, place a disk with backup copies in the file for safekeeping.

4. Plan ahead for next year by setting up a filing system for documents and receipts for the current year. Get a jump start on next year's tax return by setting up an expanding file for 2010, with sections labeled for income, expenses and taxes. Place documents like payroll stubs, 1099s and statements from your financial institution in the income section; receipts for tuition expenses, real estate transactions and donations in the expense section; and receipts for tax expenses in the tax section. If you store the file close to where you sort your mail and file the documents as they are received, the papers will be ready for you when you begin working on next year's tax return.

5. Preserve tax returns indefinitely and store supporting tax documents, which can be destroyed after seven years, in a file labeled with the year and the destruction date. Be sure to check with your tax advisor before destroying any documents.

6. Put Your Feet Up and know that you are ready for next year!

Smead Organomics offers practical ideas and advice on a variety of topics including the latest trends and solutions to the most common organizing challenges -- like tax time. It also offers a customized solution for each visitor through "My Organomics" -- an interactive tool that delivers solutions based on a person's individual work style and organizing challenges. Smead Organomics users also can join "Club Organomics," Smead's online organizing club at www.Smead.com/Organomics.

Courtesy of ARAcontent