Setting up a tax file can save you a lot of time and trouble when it comes time to file your taxes. Consider the following categories to organize your files.

INCOME: Include pay stubs, W-2's, 1099's, interest statements and dividend statements.

MEDICAL: File receipts for medical expenses and medical insurance out-of-pocket expenses.

DONATIONS: Include receipts for cash and non-cash donations.

REAL ESTATE: File interest statements from mortgage, and tax assessments.

CHILD CARE: This file is for childcare payment receipts.

TAX CORRESPONDENCE: Include any important letters from the IRS or your state revenue service.

STUDENT LOANS: File statements of loan interest paid.

MISCELLANEOS RECEIPTS: Add any receipts that might be needed for deductions.

PAYMENTS: Include any records of advance payments.