Set up a tax file system now and make it easier to file your tax related paperwork throughout the year.

Here are some of our favorite PERSONAL TAX organizing file ideas by category:

• Income (Miscellaneous) -
  Contract labor income receipts
  W-2's, 1099s, dividend statements and banking interest income statements - Companies are required to mail these to you before January 31st

• Real Estate -
  Interest statements from mortgage companies and any tax assessment payments.

• Medical -
  File receipts for all health insurance payments and medical out-of-pocket expenses.

• Child Care-
  Child care payment receipts.

• Student Loans -
  Statements of loan interest paid.

• Miscellaneous Receipts-
  Keep receipts for proof of any deductions taken.

• Tax Payments-
  Estimated tax payments and any records of advance tax payments.

• Donations -
  Include receipts for both cash and non-cash donations along with an inventory list of what was donated. We recommend www.itsdeductible.com online input and tracking to value your items (IRS approved).

• Tax Correspondences-
  Any important letters from the IRS or your state revenue service.

• Previous Years Tax Papers-
  File by year your old tax returns.