Today is the first day of spring, a perfect time to freshen up your home and financial clutter!Here are a few great tips to help you get your finances in tip-top shape for future tax seasons and also keep you clean and clutter free year round.
Start with your 2009 tax return
If you are on the ball and already filed your 2009 tax return, then you should have a squeaky-clean view into your financial situation.
It’s a best practice to keep a printed copy of your completed tax return. This allows you to review your refund or amount due and possible asses whether you should adjust your withholdings to help improve your outcome at tax time.
Think you need to update your withholdings? Check out our W4 withholding calculator here.
Clean your cabinets
Are you a shoebox organizer? Do you have piles of old statements and receipts stuffed in shoeboxes and piled in closets?
You should typically keep tax related documents for 5 years and then purge beyond that – keep it clean. This includes final copies of your filing forms, W-2s, 1099s and receipts. Most online tax preparation services offer safe keeping of your tax returns for a given timeframe. Taxbrain offers a 5 year safe-keeping option, your tax information is stored securely and you have the ability to access it at any time and print a copy. Learn More
De-clutter your closets – lower your taxable income
One great way to lower your taxable income is with charitable donations. Clean your closets and find the hidden treasures that you no longer need, these dust bunnies are another mans treasures!
Be sure to keep clean records about the types of items you donate, their condition and the estimated value. The IRS requires this information if you decide to itemize your donations and use a schedule A. Learn more about charitable donations on the IRS website.
Bank it, don’t buy it!
Every spring, neighbors emerge with shiny new cars, barbecue grills, power tools and even sport recreation vehicles like new boats and motorcycles.
Feel the need to keep up with the Jones’s? Don’t! If may appear that the grass is greener but most likely it’s not. Keep in mind, a lot of these new toys are paid for with credit cards and tax refund cash. Use your extra cash to save for a rainy day, or pay off a credit card or other debt. Keep a tidy financial household and you’ll be ahead of the game and the Jones’s in the long run!
Go start cleaning, happy spring!
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