Why Keeping Receipts for Taxes is Important. Which Receipts to Keep and Which Not to Worry about?
The start of a New Year is time to begin thinking about preparing financial records and employment documents for tax filing. Nobody looks forward to this annual chore, but it unfortunately must be done. Which expense receipts are important and which are not for tax filing is discussed below. Make sure you’re keeping receipts for taxes the right way.
Keeping Receipts for Taxes in Las Vegas
Your receipts are what the IRS refers to as ‘documentary evidence’ of business expenses during the year; expenses you plan to deduct from income or use for tax credits. Generally, tax planners advise you to keep receipts for the following expenses. If in doubt, don’t throw it out! It’s better to have them and not need them than the other way around.
- Charitable contributions
- Tuition & student loan payments
- Fuel purchases if vehicle use was work-related
- Rent & mortgage payments
- Childcare payments
- Office rent, including for a home office
- Medical expenses related to exams, hospital stays, out-of-pocket Medicare expenses, dental work, psychiatric and chiropractic care, optometry, etc.
Receipts You Can Discard
Generally, receipts for work-related travel are not required to be kept if the amount of the purchase is under $75. If you bought a meal during work-related travels that cost $40, you don’t need the receipt. If the meal cost $80, hold onto it. Take a picture of the receipt with your smartphone, email it to yourself, and store then in a separate email folder if that’s easier for you. Your accountant will need them come tax season.
Let Us Help
Contact the tax experts of Layton Layton & Tobler to get a head start on your tax planning and preparation. Keeping receipts for taxes is just one of many things you’ll want to be ahead of the game on. Not planning and executing your plan in regards to taxes is like not planning and executing in your business operations. Not doing so can land you in a bad place.
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