I Can’t Find My Documents

Q. I have so many receipts that I have kept at the end of the year.  What do I really need to keep?

A. It is so helpful when my tax clients come to me with all of their documentation already compiled.  Documents you probably don’t need to keep include receipts or bill stubs for personal household items that you can’t deduct on your tax return.  If you run a home business, you can often deduct costs for the part of the home regularly and exclusively used for that business.  If you do not run a home business, then it really doesn’t make sense to keep copies of utility bills and credit card statements.  If you get most of your statements and bills online like I do, the vendor actually stores copies of them for one year and sometimes longer.  This is useful in case of a dispute, but keeps you from storing more paper.

As far as tax-related items you should keep, consider the following list:

• mileage logs – useful for any driving you did for charitable work, driving for you employer for which you were not reimbursed and mileage for doctor visits.  Your log should include starting and ending mileage, date and reason for the trip.
• cancelled or imaged checks – this is useful for any cash charitable contributions you made (never use actual cash for these, always at least use a check).  It is also useful for any medical expenses that you hope to claim on your return
• bills – like I stated above, if you have a home based business, keep all receipts used in connection with your home.  You may be able to deduct a portion of these expenses.
• W-2s, 1099s, 1098 – all documents provided by your employer, your customers, your bank, mortgage company, investment brokerage or student loan provider should be kept.  This information should be verified and is being reported to the IRS to determine if you reported all your income
• Other docs – any document that you feel would support a deduction you will take on your tax return.

Publication 552 is a good document by the IRS that discusses in more detail what records you should keep.

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