How To Make Tax Season Suck Less - ADHD/AuDHD Edition
- Jaren
- Mar 7
- 3 min read
When I was 18 or 19, I got audited by the IRS (I was living in the US at the time) because I forgot to declare $600-something I made working for my dad. He sent me a slip at the end of the year; I didn't know what it was for, so I probably threw it out.
I can say with confidence, though, that as big of a pain in the butt as the auditing process was, I am glad that experience happened. It forced me to come up with a system to make prepping for tax season easier and less dreadful, and I’ve perfected it over the last five years. I thought I’d share what I do, in case you find something in this process helpful.
Keep in mind: I am self-employed, but I receive slips (1099s and T4s) so my income is variable.
Tips to Make Tax Season Easier
If you're struggling to stay organized, try any of these tips and let me know if they work for you!
1. Keep Track of Receipts in a "Remarkable" Container
Choose a unique or even wild container where you can dump your receipts. At the end of each month (ideally), put them all in an envelope and mark the month and year on the outside. Then, transfer that envelope to the box mentioned in step five.
Pro-Tip for the Self-Employed: You’ll need to circle or highlight expenses on your receipts, but a word to the wise: do not use highlighters on heat-transfer (thermal) receipts; they will fade over time and become unreadable. Instead, circle the date and underline the expenses. If you’re new to this and unsure what to keep, just keep everything.
2. Highlight Monthly Statements
I highlight my credit card and checking account statements for two reasons: to maintain a budget and to catch any "weird" spending patterns. You can color-code however you like, but here is my system:
Yellow: Fixed costs (mortgage, rent, insurance, utilities).
Orange: Variable essentials (groceries, personal care, pets).
Green: Memberships and subscriptions.
Blue: Transportation-related costs.
Pink: Payments and debt servicing.
You will likely have other categories, such as gifts, medical, dining out, or "fun money." I recommend watching @inspiredbudget’s Real People Budgets to help figure out your specific categories.
3. Create a Budget
I highly recommend @inspiredbudget’s series Real People Budgets (mentioned above); they’re addicting! The host also wrote a book on the subject. She teaches how to create zero-based budgets, which are great if you're on a fixed income. Even though I have a variable income, I still set a fixed zero-based budget; anything extra goes directly toward paying down my school debt.
4. Track That Money
I use the Goodmoney app—it’s essentially a digital envelope system. I’ve found that I stay more motivated when I manually log my spending. In a way, it actually prevents me from overspending because I hate the chore of inputting data! While there are apps that sync to your accounts automatically, those don’t work for my brain. I have to be an active participant.
5. Use a "Master" Container for Important Documents
Keep a separate, larger flat box for "big picture" items: government papers received throughout the year, the monthly envelopes from step one, contracts, and checks, etc. Having everything in one place makes it incredibly easy to scan and upload for your accountant. Make sure to hang onto everything for seven years!
That's it! That is how I stay organized throughout the year. Easy peasy, lemon squeezy.
— J
Do you have a better system? Please share! I love learning new ways to stay organized, especially when it deals with money.
Comments