Don’t lose out on important tax benefits just because you forgot to keep your receipts and other documentation.
Remember the deduction for sales tax. Keep receipts for any major purchases you make during the year. The total may add up to more than the amount in the optional sales tax table.
Keep track of your medical expenses, so that you will know exactly how much of your expense has been paid by insurance and how much you paid yourself. If it turns out that you can itemize deductions next year, you will need that information and documentation.
Get receipts for cash or property you donate to charity. Also, if you do volunteer work, keep track of your out-of-pocket expenses, your actual expenses for the use of your personal vehicle, or a log of the mileage driven for charitable purposes.
If you have travel, transportation and entertainment expenses for business purposes, you may be able to deduct certain expenses on Form 2106. You will need to keep receipts and records of your expenses. This could be in a diary, notebook, or any other written record that adequately substantiates the time and place of the expense, and the business purpose. Don’t forget to keep a log of actual expenses for gas and oil, or mileage for business use of your personal vehicle. And keep your receipts for parking and tolls. These are deductible whether you use actual expenses or the standard mileage rate.
If you have a job-related move during the year, you will need the receipts for your moving expenses, including transportation for you and your family and the shipment of your household goods and personal effects, in order to complete Form 3903.
If you look for a job, remember that job-hunting expenses can be included as a miscellaneous itemized deduction, whether or not you actually get a new job.
Educators should keep receipts for out-of-pocket expenses for books, supplies, and other materials used in the classroom. They are worth a deduction for adjusted gross income.