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What Files Should I Keep For My Income Taxes? 
 
by kmhagen June 21, 2005

Itemized Deductions

  • Medical and dental expenses
    • Medical records and prescriptions
    • Statements from doctors, hospitals, clinics, and other health care providers
    • Documentation of insurance reimbursements
    • Log or diary of your actual transportation expenses or a log of your mileage
    • If you paid qualified medical expenses with a distribution from a Health Savings Account (HSA) or Medical Savings Account (MSA), keep a record of the name and address of each person you paid and the amount and date of the payment.
  • Taxes
    • W-2 forms and 1099-R showing state income tax withheld from your wages or pensions
    • Copies of state and local income tax returns and estimated state income tax payment forms
    • Form 1099-G if you received a refund of state income taxes
    • Mortgage payment statements or vouchers (for real estate taxes)
    • Copy of closing statement on the purchase or sale of your home (for accrued real estate taxes)
    • Property tax assessments and proof of payment
    • If you deducted actual state and local general sales taxes instead of using the optional state sales tax tables, you must keep your actual receipts showing general sales taxes paid.
  • Interest expense
    • Mortgage payment statements or vouchers (for interest expense)
    • Form 1098, Mortgage Interest Statement
  • Contributions
    • Receipts from charitable organizations showing its name and the date and amount of the contribution
    • Written acknowledgment of your contribution from the organization if you donate cash of $250 or more
    • Written statement from the charitable organization for contributions from which you benefit, that are more than $75 and are partly for goods or services
    • Written acknowledgement of your contribution from the organization if you donate a car, boat, or aircraft
    • Records (diary or log) of your out-of-pocket expenses when you perform volunteer services for a charitable organization
    • Diary or log of actual transportation expenses or a log of your mileage
    • For donations of property, a a receipt from the organization showing its name, the date and location of the contribution, and a reasonably detailed description of the property
    • Reliable records (appraisals) of the fair market value of the property at the time of the contribution, the cost or other basis of the property, and the terms of any conditions attached to the contribution
  • Nonbusiness casualty and theft losses
    • Insurance company adjuster’s report or a police report that show the type of casualty (car accident, fire, storm, etc), and that the loss was a direct result of the casualty
    • Titles to the property, showing you are the owner
    • Appraisals showing the decrease in the fair market value of the property due to the casualty
    • Copies of insurance claim forms and reimbursements
  • Employee business expenses
    • Diary or log of business expenses
    • Copies of expense reports submitted to your employer
    • Records of reimbursements or allowance (such as per diems) received from your employer
  • Miscellaneous deductions
    • Paycheck stubs or pay statements showing deductions for union dues or other deductible work-related expenses
    • Diary or log of job-hunting expenses
    • Documentation of investment expenses
    • Schedule K-1 for partnership expenses you can deduct

If you have a home-based business, keep a copy of the calculation you make to determine the percentage of business use of your home.  Keep copies of your bills and statements of general household expenses such as utilities, and copies of your depreciation calculations on your home and on assets you use in your home-based business.

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