I’m writing this on Tax Day, April 15, 2024.

Did you know? I have two accountants in my life, my husband and now my oldest son.

We all have our strengths, and these two are very organized about a lot of things and especially around helping people with their taxes.  It’s funny to me, neither my husband nor my son are in tax accounting for their job, but they both help friends and family members this time of year.

And, in keeping with last week’s topic of deadlines, I will be very happy for them both when the tax deadline has passed and they can get back to a more regular schedule!

At dinner last night, I asked Greg that if he was on this week’s podcast,  what would he want you all to know? So here we go: a collaboration between my accountant, the most organized person I know when it comes to money, and me, your certified professional organizer.  Maybe some day I will get him on the podcast!

• First up, he and I both recommend that you create a couple of file folders this week.
  • Name one 2024 Taxes, or 2024 Supporting Tax Documents or something like that.
  • Start another one called 2024 Paid Bills.
  • The 2024 Supporting Tax Documents is a waiting receptacle for anything that comes along that you need to keep for next year’s tax time.  During the year, we might receive, for example, thank you letters or receipts for charitable donations, and you can just drop those in the waiting file. In addition, you now will have a safe place to keep your 2024 tax documents when they start to arrive the end of January, 2025.
  • The 2024 Paid Bills file is for for just that – Paid Bills in 2024.  If you still receive paper bills and if you keep them after they are paid, drop them in there as the year progresses.  We don’t really need to keep them in separate folders. I mean – how often do you go back and look at them anyway?
  • These first two files need to be kept close at hand.
    
• Next up, make a folder for your filed 2023 taxes, if you have them in paper form.  This file does not need to kept so close at hand, but it certainly needs to be kept.  In the safe? Bottom file drawer?  Or digitally, save them on your computer and back them up on your external hard drive or the cloud.
  
• If you really want to do next year’s you a a solid, make a note of what documentation you required for your 2023 tax filing – W2s, 1099’s, interest statements from investments, etc..
  • Let’s face it, our financial life – at least the accounts, not necessarily the amounts – don’t vary too much from year to year.
  • So, 2023’s filed tax return is going to be a great place to get ready for your 2024 filing in 2025.
    
• Ok, now here is the real tax advice:
  • Here is the other thing I want you to do for future you.
    • Go to your calendar on your phone, on your to-do list, in your paper calendar for 2024 on the last page that is for planning for 2025.
      • On February 1, 2025, make yourself an appointment on your calendar to check out your 2024 Supporting Tax Documents file. Look at whatever information has accumulated in there from this current year. Look at the list in there that you made for what end of year statements, wage information, etc. that you’re waiting for and start keeping an eye out for it.
      • Also on February 1, 2025, put a date on the calendar to do your taxes or to go and meet with your accountant.
        
• Finally, learn from your 2023 tax experience.
  • Are you getting a tax refund?
    • Cool. That works.
    • Some people intentionally use their taxes and tax refund as a savings account.
  • Do you owe taxes?
    • Less cool, I know. But it means you brought home more pay during the year.
    • And some people just expect that they will owe taxes and plan accordingly.
  • If you would like to adjust the taxes that get taken out of your pay during the year, to also then adjust your tax refund or your tax bill, you can do that.  Adjust your withholdings with your HR department, if you have one, or send in quarterly tax payments.
  • And here is a public service announcement: if your accountant gives you suggestions on how to make the tax process go easier next time, please listen to them and take action. They are our experts and we need to heed their advice.
    • For example, I have some homework to do. I need to make changes about how I note things in Quicken, because apparently my accountant and I have vastly different definitions about what constitutes as “Owners Equity”. My accountant is honest and patient, even when I was confused. But we’ll get there.

Don’t scramble, don’t procrastinate.  Give yourself the gift of calm competence in 2025.