Many people have already filed their 2011 taxes, but for those of you who are still in the process of gathering information, here’s a tip: Create one central file for all documents pertaining to 2011 taxes an label it: 2011 TAX INFORMATION. As important documents arrive in the mail such as 1099’s, w-2’s or year end statements, place them in the file. If your documents are sent to you electronically, print them out and do the same.
Most people aren’t sure where to put these documents and inevitably they end up shoved in a drawer or worse, tossed in the trash. Having an organized system for filing and retrieval of documents saves you valuable time in the long run.