Whether you plan on using tax preparation services or doing it your own, online tax preparation will make your life much easier. Keep everything in color-coded files and you can keep all those labeled envelopes together by placing them into a large manila folder. Better yet, try a large coupon book or accordion folder that you can buy at a local office supply store. A filing system will make your income tax prep a lot simpler. As you get receipts, tuck them into an appropriate envelope labeling them as rent/mortgage interest, property taxes, medical expense, investments, charitable donations and so on.

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