These Are the Receipts To Keep for Doing Your Taxes
These Are the Receipts To Keep for Doing Your Taxes
By Barri Segal February 3 2022
Gathering and saving receipts and tax documents is an important part of filing taxes and receiving your refund quickly. Whether you take the standard deduction or itemize deductions, most people filing their 2021 taxes in 2022 will be happy they took the time to prepare when the IRS deadline rolls around.
Review which receipts to keep for taxes — the information below will help to make tax preparation less painful and ensure you take all of your eligible deductions.
What Receipts Should I Keep for Taxes?
In the event that you’re not sure how to file receipts for taxes, consider seeking the help of a tax professional. They can not only tell you what receipts to keep for taxes, but they can also assist taxpayers with complex financial situations and can help with calculating all types of taxes. Concerning the money you receive back, this could also help protect any tax refund. It might even give you a large refund to spend. But rather than focusing on how to spend or what not to do with a refund, a tax expert can use receipts to help you avoid needing a refund in the first place.
Whichever route you take, make sure you know how to save and organize receipts for taxes — the last thing you want is to not have the documents you need to defend yourself during an IRS audit.
Small-Business Owner Receipts
Self-employed individuals should consider using QuickBooks or similar accounting software, according to Bonnie Lee, an enrolled agent and owner of Taxpertise in Sonoma, California.
“The scope of an audit of a small business is reduced considerably when the auditor discovers that adequate books and records, checkbook reconciliation and all other bookkeeping tasks are being performed on professional software by a professional accountant,” said Lee.
A small business owner wondering what receipts to keep for taxes should make sure to save these documents:
Sales slips Paid bills Invoices Receipts Deposit slips Canceled checks
Keep your gross receipts because they show the income for your business, which you must include when you file your taxes. Gross receipts to save for taxes can include:
Cash register tapes Deposit information Receipt books Invoices Form 1099-MISC
Don’t forget to save your receipts for business purchases, which are classified as the things you buy and resell to consumers. Save these purchase documents and receipts:
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