- 1). Prepare several folders for the tax year. Label each folder for the type of income or deduction, such as IRA accounts, mileage or mortgage interest.
- 2). Gather all tax documents for the year. Identify the type of document, such as credit card X or bank account ledger Y. Place all similar documents in a pile.
- 3). Organize the pile by month. Put January on top with the rest of the months below. Clip the months together.
- 4). Place the documents into the corresponding folders. Group all clipped documents that are similar, such as credit card statements, in the same folder.
- 5). Label the outside of the box with the tax year. Staple a copy of the tax return to the lid of the box. Include another copy in its own folder with all supporting worksheets. Insert the folders into the box. Store the box in the attic or garage.
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