“Doing Taxes” a new way…..

    Since January has rolled around, it is time to begin sorting through all last year’s receipts, and get ready to “do taxes.” It occurred to me that now would be the time to do a bit of change in how to keep records for the upcoming year’s taxes. 

The first thing I want to do in my restructure is to stop keeping so many receipts to everything. I have decided that once I record it in my check stub, and Microsoft Excel, (which is a Microsoft budgeting tool stored on my computer) I will trash it, shred it, or recycle the paper.  Being a bottom line type person I’m planning on keeping only those receipts that I really need. 

 For example, department store receipts, (such as Target & Wal-Mart) will only be kept for 3 months, unless it is for a major purchase, charitable donation, or business expense.  Three months is the maximum amount of time most department stores offer returns.  If the receipt is for food, and was bought with cash only, I plan to toss those after recording it.  If it has a debit/credit card number on it, I keep that part of the receipts to shred, and recycle the rest. But this is done only after recording in Microsoft Excel.
I will keep all other monthly receipts in an envelope with January 2011 written on it, and then go through at the end of each month, checking all receipts to see what can be thrown out. I also plan to pull out those receipts which I need to keep until the 90 days is up, & keep in a separate envelope. The envelopes will be in a file folder, in my filing cabinet labeled with the month and year.
More to come on this issue each week! Hope this helps!


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