Making Tax Time Easier

I have a trick I've used for a number of years to make tax time easier. At the beginning of each year, I take a file folder and label it for the year - "Taxes 2009". I keep the folder in an place that's easy to reach. Then as things happen during the year - transactions or payments that might affect taxes, or receipts or other records that come in - I just throw them in the file. In January and February, as W-2s, 1099s or other year-end records come in, they go in the file. Then, when I sit down to organize my materials at tax time, everything is right there to hand. Sometimes I have to go back and consult my checkbook or credit card statements (those are saved in separate files), but otherwise, everything I need is in the tax file.

"Taxes 2010" is already made up and starting to accumulate materials!