Now that you survived another tax season, let's make sure that all of your personal finances and records are up to date. You don’t need a degree in accounting to audit yourself after tax season, but it is important to make sure your financial plan doable and realistic.
For example, start by assessing what you may owe. If you owe more to the Internal Revenue Service (IRS), this could mean you were under-withholding from your wages. If you received a large tax refund, you may also need to make adjustments to your withholding, because this can mean you’re giving more money than necessary and who really want to do that?
Now, what about all that paperwork? From W-2s to 1099s, the piles of paperwork you accumulate after-tax season can be overwhelming. But it is better to keep it around than to have to go look for it if need. These documents are proof of what you owe or are owed after tax season. You can even use these documents to help file your taxes next year and keeping proof of your filing will help if you need to make an amended return.
It is a good idea to keep your paperwork for at least three years. However, any paperwork related to the purchase of a home or stock is valuable and should be kept longer.
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