Organizing your papers for tax filing is a detailed process that can save you time and ensure accuracy. Here’s a step-by-step guide with additional details:

Gather All Required Documents

• • Income Records: Collect forms like W-2s (wages), 1099s (freelance/contract work), Social Security statements, and other income-related documentation.
  • Investment Statements: Include brokerage account summaries, dividends, and capital gains/loss records.
  • Property Records: If applicable, have rental income or home sales documents.

Sort Deductions and Credits

• • Charitable Contributions: Keep receipts or acknowledgment letters from organizations.
  • Medical Expenses: Save bills, pharmacy receipts, or insurance statements.
  • Education Costs: Include 1098-T (tuition statement) and receipts for books or other qualified expenses.
  • Homeownership: Collect 1098 forms for mortgage interest and property tax payment records.

Track Expenses for Business or Side Hustles

• • Receipts: Categorize expenses like supplies, office space, travel, and meals separately.
  • Mileage Logs: If you use your vehicle for business, maintain an accurate log.

Keep Financial Statements

• • Gather year-end bank and credit card statements. They may help identify deductible expenses or confirm your income records.

Categorize by Topic

• • Use separate folders or envelopes for categories like income, deductions, credits, and business expenses.

Digital vs. Paper Organization

• • Paper Files: Use labeled folders or binders for quick reference.
  • Digital Storage: Scan important documents and save them in secure, labeled folders. For example:
    • Create subfolders by year (e.g., “Taxes 2024”).
    • Use cloud services with strong encryption for backups.

Use Tax Preparation Checklists

• • Many online tax services provide checklists to ensure you’ve accounted for everything.
  • Clergy Financial Resources has a special organizer designed for clergy.

Consider Prior Tax Returns

• • Keep copies of prior years’ tax returns for reference. They may contain carryovers or deductions that apply to the current year.

Set Up a System for Year-Round Organization

• • Use a folder or box to collect documents throughout the year. This minimizes the scramble during tax season.

By organizing your papers in this structured way, you’ll simplify the filing process, avoid overlooking important items, and make life easier for yourself—or your tax preparer.

Still, have questions?

Contact Pro Advisor Support to answer your questions.

Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR | Consulting
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421.0101

Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

For more information or if you need additional assistance, please use the contact information below.

Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101 
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com