Received your book, Self-employed Tax Solutions, from Amazon and can't wait to dive in and then to tackle my 6 years of back taxes. Hopefully with the book holding my hand, I can do it.
I just discovered boxes of tax materials and bank statements from up to 20 years ago. I hope I'll find (in your book?) that I can toss them.
Thanks again for your help.
All the best,
Beth ... music business
Hi Beth,
Here's a link to my site on how long to keep records, How long to keep tax records . There is a longer explanation in my book starting on page 138 and there's also something about record storage which starts on page 189.
When tackling six back years of tax returns, the task can be daunting. While you're doing it, rather than overdoing it, take your time; take lots of breaks. It’s a lot like cleaning out a closet. Here’s some steps to get you on the right path:
- Get one file box for each year. Go through each paper looking at dates only. Put each paper into the "year" box to which it belongs. Pay no attention to what the paper relates to.
- Now go through each box, sorting the paper into the following piles.
- Personal, nothing to do with taxes
- Income
- Expenses
- Investments
- Other money related things
- Ask tax pro
- OK to throw away [But don’t discard these until you’ve had the returns prepared … just in case.]
- Get out Tax Solutions and sort and tally your records as explained in the Most Simple System.
Now you’re ready to go see your tax preparer.
Cheers!
June
