Non-Virtual Tax Time

At the end of the year, I do a little tax planning. Tax planning these days is really a 12-month process, but by the end of December I’m pulling it all together.

I’m pretty much old school – no technology or apps for me: During the year, I keep every paper receipt known to humankind. Then I put them in manila envelopes – one envelope for Jan. 1 through June 30, and the second envelope for the second half of the year. Business miles are tracked on a paper calendar.

By the end of December, I’m ready to sort through my receipts: only ones that qualify for a business or household deduction get saved. The rest get tossed.

Next, I alert all working household members to be on alert for their W-2 statements. These, of course, are essential tax documents that should arrive by Jan. 31 and show cumulative, year-to-date income and tax totals for the previous year.

If you don’t get your W-2 information by Jan. 31, there could be a couple of reasons: One, your current or past employers are late getting the info together. Or, two, they don’t have your correct address on file. If you don’t get the W-2 by Feb. 14, it’s time to contact the IRS at 800-829-1040 and see if they can find it, or you can begin working on a tax plan with them using your last pay stub from December.

For me, by Jan. 31 or so, I usually hear from my accountant. He does EMAIL me a comprehensive tax planner that I fill out and drop off to him.

If I have all my documents ready to go, it’s a cinch by the mid-April tax deadline. And I’ve never been late in paying my taxes.

Update: I have moved from Connecticut to Florida, but my low-tech tax planning has pretty much stayed the same.