Every year I say that I'm going to organize the paperwork to better prepare for the taxes and perhaps this will be the year I do it. What do I need to think about?
Unlike many, I have a fairly simple financial situation. We're not the kind of people, good or bad, that seek lots of tax write-offs and other plans to avoid paying our share. I'm not pointing fingers as I know that there's lots to know about making money, saving money, and paying a fair amount of taxes--not too much or not too little, and in the future, I may study that more. But for now, our focus has mainly been to stay on top of our bills and spend wisely.
As I think about this year's taxes and taxes to come, there's a number of areas, I want to tidy up.
Contributions
Our contributions for the most part have mostly been in response to requests. I want to think a bit more about that and develop a better system and process for contributions.
Paperwork
For the most part, I like to have paperwork online with a paper backup for the essential information. I want to better the online/offline filing for that.
What comes in/What goes out
I want to take a closer look at what comes in and what goes out with regard to income and taxes. I want to get a better handle on that particularly as it relates to new expenses related to our stage in life.
It's worth taking the time to understand how taxes work for you as well as the time to organize your finances in easy-to-understand, retrieve and manipulate ways. In the end, that pays off.