What Receipts Should I Keep for Taxes ?
Terry Peltz, Director
Performance Advisors LLC
November 11, 2011
Personal Expenses - Only keep those receipts that relate to something on your tax return. Some Examples follow:
Medical Bills/Receipts
Child Care Bills/Receipts if you took the childcare deduction
Contributions (both monetary and non-cash)
Gambling Winnings/Losses
Mileage Logs for healthcare and charitable time
Repairs/Maintenance receipts on any property you own
Investment Expense receipts
Job Expense receipts you took a deduction for (ex: union dues)
Forms that came in the mail that are associated with your tax return (1099′s, etc)
Other Deductible Expenses - Look at each line of your tax return that has a number on it, and keep the documentation for that number!
Meals/Entertainment for business-these are 50% deductible for taxes
Mileage Logs for miles driven OR actual auto expenses (gas, oil, repairs, etc)
All Conference/Education Related Receipts (transportation, hotel, meals, etc)- yes, QuickBooks Bootcamp is a deductible business expense as long as you are currently in business (not just thinking about starting one)
All Home Office Related Expenses - keep the bills/backup for your calculation of the home office deduction
All bills/receipts for large purchases (fixed assets)
Pretty much any piece of paper that’s related to business income and expenses during the year-again, look at the Schedule C on your tax return (which lists the business income and expenses) and make sure you can backup all the numbers listed there.
Business Expenses
Sales Taxes - This is becoming even more of an issue as states are broke. Make sure you understand the sales tax laws in any state you have a physical presence in or do business in.
Employment Taxes - If you have employees, make certain you’ve had knowledgeable help to get your payroll setup properly. Not complying with payroll tax laws can put you out of business.
1099′s - The new Health Care Law has changed the 1099 rules for the worse. Reporting requirements are much more stringent. If you hire nonemployee services (accountant, lawyer, construction labor, cleaning service, etc) please be aware that you need to be sending them a 1099 if you paid $600 or more during the year for the service.
Personal Property Taxes - Make sure you know what taxes you are liable for through your local jurisdiction. If you’re unsure, ask at the County Clerk’s office for help with this. And, check your state website for a booklet or information packet on how to start a business in your state.
Other Yearly Filings - This is different in each State. Sometimes, information returns are required, and there can be heavy penalties for nonfiling.
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