Keep these close as well…
What some people are unaware of is the fact that they can qualify for common eligible deductions, and these require proof in the form of a receipt. So, keep track of these documents, you might need them:
• Receipts that you contributed to a traditional IRA;
• If you report losses keep receipts of bad debts or worthless securities;
• If you’ve made payments to household employees keep those receipts as well;
• Receipts and documents for qualified home improvement costs on real estate;
• Proof of any inheritance or gift property;
• Receipts for medical and dental expenses (including prescriptions that are not covered by your insurance);
• Receipts regarding energy-saving home improvements
How can you organize your records and receipts efficiently?
The easiest way of doing that, in case you have paperless documents is to scan or take a picture of all of them and put them in an app such as Expensify or you can create a special folder on your computer or phone and keep them all in there.
Another way is to immediately put them in a physical folder or ready-made receipt organizer, arrange them by month, year and category.
How long do you have to keep them?
Well, this is debatable, some experts say to keep them for at least three years, but others argue that it needs to be six years.
