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Tax Prep: Four easy steps to get organized now

By Celia Colista, www.couponSeven.com, Source: MCT News Service

Tax day is just weeks away. Time for a personal kick off to tax season. By spending an hour or so collecting documents and receipts, you'll discover anything that's missing in time to call your employer, bank or others for documentation. Plus, when you sit down to do your taxes later, your receipts will already be neatly categorized and ready to add up.

Here are four steps you can get done before lunch this weekend _ and still have time to catch a movie:

1. Get Supplied: If you don't already have a system set up, buy some file folders and/or envelopes. Label each envelope for particular expenses, such as medical co-pays and charitable donations. Label a folder "income."

2. Collect Proof of Expenses: Gather receipts for out-of-pocket medical expenses, charitable donations or other deductible expenses. Place any receipts in the appropriate folder or envelope. If you conducted a job search or moved for a job some of those expenses may also be deductible. (For more information on itemized deductions, go to www.irs.gov)

3. Find Your Income Statements: Collect any W2s, 1099s, or other tax forms that show income, including investments and savings. Are you missing a W2 from an employer or a 1099 from your bank? Make a note to contact the relevant company or institution for any missing forms.

4. Gather Profit or Loss Statements: If you sold stocks, property, a business or otherwise made a profit, you may need to report it to the IRS. Make sure you have all the documentation from your bank or other institution.

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(Celia Colista is a New York-based writer who writes about personal finance, cooking and sustainable eating. Visit couponSeven.com _ Your lucky source for online coupons, free shipping offers, and other deals 7 days a week.)

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Distributed by McClatchy-Tribune Information Services.

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