Tax $avers
1. What Records to keep
The requirements of what to keep vary depending on the area under review by the IRS. To assist you in keeping good records, included in this brochure is a Specific Retention Requirements chart that summarizes record requirements. The chart outlines records needed for each area of your tax return.
2. What is Required As Proof
So, you've kept your records for the right time frame, but teh IRS says you must prove your claimed deducations. The trick here is that "PROOF" has a sliding definition depending upon what is being reviewed.
- Amount
- Date of Payment
- Who the Payment was made to (payee)
- Purpose of Payment
Specific Retention Requirements
| Adoption | Bills, canceled checks, legal agreements, receipts |
| Child Care | Bills, canceled checks, statement from child care provider |
| Medical & Dental | Bills, canceled checks, statements, receipts, mileage log |
| Mileage Log | Date, miles driven, to/from destinations, purpose, PLUS; expenses for tolls, parking fees, taxi and bus fares |
| Interest | Statements, notes, canceled checks, Form 1098 (mortgage) or Form 1099 (interest and dividends) |
| Taxes | Form W-2, canceled checks; statements |
| Miscellaneous | Receipts, canceled checks, statements |
Charitable Contributions Requirements
Cash Donations
| Amount | Required Proof |
| less than $250 | Canceled check and receipt from charity or bank statement |
| $250 or more | Same as above PLUS charity acknowledgment or payroll records |
Donation of Property (in good or better condition)
| Amount | Required Proof |
| less than $250 | Receipt from charity with date; location; names; and property description PLUS written record of each item donated |