Tax Time

Copper Contributor

It's Tax Time at our house.

I wish to improve the ease of record keeping.


2 Replies
Your question doesn't make sense.


Your post may not mean much to a person outside the United States, where we are required to complete and file our tax returns.

But your post is vague.  What part of record keeping do you need assistance with?  Classifying income- and expense-related documents?  Determining how long you are required to keep documentation?  Those questions are best answered by a tax advisor.

The US Internal Revenue Service has this to say about gathering your documents in preparation for completing your tax return: Gather your documents 

You could maintain data on relevant documents in a workbook, and add entries throughout the year. For example, some of the data that you might capture into a worksheet for deductions include:

  • document description (receipt, loan document...)
  • location of document (e.g., shoebox #4, red file folder for current tax year personal deductions, green file folder for multi-year business deductions)
  • payment recipient
  • date of expense
  • amount of expense
  • tax classification (e.g., medical expense, alimony payment, business use of home, business use of car, HSA contributions, charitable donation)
  • offset amount (e.g., market value of item that you bought at charity auction?)
  • carryforward amount (determined for some classifications as you complete the tax return)
  • relevant tax year
  • date the document becomes disposable

Your tax advisor can suggest better terminology, and other information to capture.


More information from the IRS: Credits and Deductions for Individuals; Business Credits and Deductions