Organize your tax information

GATHER YOUR PAPERWORK

Tax-related income statements: Last year’s reports should have been sent to you in January. These include W-2s, 1099s and other papers related to income and earnings (including unemployment insurance, dividends and interest paid on accounts).

Records of general expenses: These include end-of-year statements for major expenses that might qualify as deductions, including annual student loan interest; mortgage or home-equity-loan interest; property taxes; bank fees and credit card expenses; medical bills (if you think they will amount to more than 7.5 percent of your adjusted gross income; see “Know the Tax Lingo,” below); day-care and tuition bills; and receipts for charitable donations.

Business records and receipts: If you run a business, keep these records separate from your general expenses: business-related income (invoices and pay stubs), receipts for expenses (including travel, meals and entertainment) and costs relating to a home office.

 

FILE IT

Group like with like: Organize your papers and receipts into envelopes or folders.

 

USE YOUR CALENDAR

Recall your major events: Go through your 2009 datebook month by month to recall and write down purchases and events that qualify as itemized deductions (see “Do the Math,” page 119).

 

TALLY YOUR RECEIPTS

Add it up: If you plan to itemize expenses as deductions, make sure you have a receipt for each one, and use a spreadsheet program or tax-preparation software to add up the expenses in each category. Never estimate. If you’re missing a receipt, use a credit card statement as a record of the purchase.