Tax time comes around every year. If you own a business or itemize your tax deductions, you need to hang on to your receipts for your records. If you are ever audited, you need the receipts to back up your deductions. The question then becomes whether or not you need to keep every single receipt you ever get. They can pile up quickly and easily overwhelm you. The following is some information on which receipts you should have for your accountant at tax time: 

Receipts to Keep

The IRS refers to receipts as "documentary evidence of an expense." You will need to produce certain receipts upon the request of the IRS. If you donate to charity and want to deduct it from your taxes, you should have contribution receipts for those donations. Any unreimbursed medical bills, such as dental, chiropractor, copay receipts, therapy, and any other medical bills that were not covered by your insurance should be retained if you intend to deduct your medical expenses from your taxes. You can also deduct your travel expenses for your medical care, so keep receipts for gas, airfare, or rental cars. Receipts for prescription medication are also important if you paid for them out-of-pocket.

If you own a business, you can save your gas receipts, restaurant receipts, mileage information, and sales tax receipts if they pertain to doing business. You can also deduct your office expenses and supplies. If you have self-employment insurance, you should have those receipts on hand. Your utility bill receipts are needed if you work out of your home. You can deduct a portion of your utilities for your home office.

If you have a child in childcare, save your monthly statements from the provider. You can deduct these expenses as well.

Information on Receipts

Keep in mind that a receipt needs to include certain information for it to be considered tax evidence. The receipt should include the amount paid, the date of the transaction, the name of the vendor or supplier, and the type of expense.

If You Do Not Have Receipts

If for some reason you cannot find a receipt, but you want to deduct an expense, you have some options. Canceled checks, credit card statements, or other documentation can help serve the purpose of the receipt. Ask your tax accountant to ensure the evidence you have will serve as a receipt. Not everything will be considered by the IRS.

Contact a local certified public accountant to learn more. 

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