Keep records of all your current year income and deductible expenses. These are the records that an auditor will ask for if the IRS selects you for an audit.
Here’s a list of the kinds of tax records and receipts to keep that relate to your current year’s income and deductions:
Income (wages, interest/dividends, etc.)
Exemptions (cost of support)
Professional and union dues
Uniforms and job supplies
Education, if it is deductible for income taxes
Automobile, if you use your automobile for deductible activities, such as business or charity
Travel, if you travel for business and are able to deduct the costs on your tax return
While you’re storing your current year’s income and expense records, be sure to keep your bank account and loan records too, even though you don’t report them on your tax return. If the IRS believes you’ve underreported your taxable income because your lifestyle appears to be more comfortable than your taxable income would allow, having these loans and bank records may be just the thing to save you.
By Ramon O. Ramos|2022-04-27T17:12:35-07:00April 27, 2022|Taxes|Comments Off on What types of records should I keep?
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