Organization first step at tax time
DINA GERDEMAN GateHouse News Service

It can be overwhelming just to think about doing your taxes.

But if you're disorganized, tax time brings extra angst as you dread having to search for documents you know you need but may not be able to find easily.

"Tax time is the time of year that highlights whether you're organized or not in terms of your paperwork," said Patty McPherson, professional organizer with Orderly Manor in Plymouth, Mass.

Create files

Tim Barry, an accountant with Needel, Welch & Stone in Rockland, Mass., said many people don't have time to maintain meticulous records, so he advises clients to create one folder that they can use for any documents they might need at tax time, so people aren't searching for what they need.

A little each day

Staying organized involves keeping on top of the new paper that invades the home.

It's important to deal with the mail, the kids' schoolwork and other paper before it collects in a heaping pile on the dining room table, McPherson said.

Throw it out

At least half the battle is knowing what should be kept and what can be tossed. People often keep reams of paperwork they'll never need, like old credit card statements, water bills, and bank statements.

As for tax-related documents, accountants tell clients to keep the actual tax returns indefinitely. Hold onto supporting data for seven years to be conservative, Barry said.