Spring Cleaning Your Financial House

Spring is the traditional season for scrubbing walls and sweeping floors, but it’s also a great time to spruce up your financial house, unearthing misplaced receipts and overlooked tax deductions.

Infographics: Spring Cleaning © CreditDonkey

“People often stumble on valuable documents and tax deductions while clearing away winter’s dust and detritus,” said Charles Tran, founder of CreditDonkey. “In addition to the $10 million that Americans deduct for donating unwanted clothing to Goodwill each year, people locate pay stubs, W-2s, 1099s, interest and dividend statements and receipts for home-office deductions ranging from utility bills to office supplies.”

Setting up money and credit management systems today, along with more organized tax filing systems, will make life easier the rest of the year, said Tran, who offered these “spring cleaning” tips:

• Review your credit report. You can get a free copy of your credit report at www.annualcreditreport.com.

• Organize financial documents, keeping all records and tax documents for the past six years. Scan the originals into your computer, so you don’t have to manage big stacks of paper.

• Review your budget and insurance policies. Spring is a great time to update your homeowner’s insurance inventory as well.

• Make a plan to pay off any outstanding holiday debts – if you haven’t already.

• De-clutter your house and donate things you don’t need or use. Get receipts for these donations as supporting evidence for tax deductions.

“When it comes to donating unwanted items, don’t forget about your pantry,” said Tran. “Be sure to take canned goods, as well as rice, beans, etc. to the local food bank.”

(Research by Emma; Graphic Design by Boris Benko)

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Follow @CreditDonkey or write to Emma A at emma@creditdonkey.com