Bank and deposit slip for every deposit, whether depositing
cash, checks, money orders, or travelers checks (one slip can
cover multiple items deposited in a single deposit)
Daily cash register tapes
Copy of all contractors' invoices when job is written (this
copy will be used to establish accounts receivable, i.e., how
much your customer owes you)
Copy of contractors' invoices marked "paid in full" and the
date when paid (this copy will be used to close accounts
receivable)
Expenses
All original receipts for items purchased
All original invoices from suppliers
All original receipts for pyaments on account
Copy of check book register or carbon copies of checks
written
All ATM receipts
All credit card receipts
All insurance policies and proof of payment of premiums
Residence utility bills (not primary house telephone line,
except long distance calls for business) for home office
deduction
Banking
All bank statements
All canceled checks
Do not throw away voided checks. Keep voided checks to
identify missing checks that could be forged or stolen.
Payroll
All statements of wages paid, taxes withheld or paid, tax
returns filed and payroll service charges and fees
All correspondence from your payroll service
All statements and proof of payment of workers compensation
insurance
Taxes
All W2's
All 1099's
All 1098's
All W4's filed by employees
All VA-4's filed by employees
Copies of change of address notifications to tax authorities
Letter from IRS assigning Federal Employer Identification
Number (FEIN)
Letter from state assigning State Employer Identification
Number (SEIN)
Letter from Virginia Employment Commission (VEC) assigning
account number
All license and tax bills from government agencies regardless
of purpose or source
All correspondence from tax authorities at the federal,
state, county, and city level
Other
City business license
All I-9 forms for every employee, including owners, for
immigration inspection
QuickBooks original and regular backup files
Personal
Income
Pay and pensions: W2, 1099R, 1099MISC
Interest and dividends: 1099INT, 1099DIV
State and local tax refunds: 1099G
Partnerships, S-corporations, estates and
trusts: K-1
Lottery winnings and payouts
Broker statements and advice of
purchase/sales of securities (keep the record of purchase along
with the record of sale of securities so the gain or loss can be
computed). If you can't prove the purchase price, you will
pay tax on the full amount of the sale.
Capital gains on sales of assets
Other investment income
Itemized Deductions
Home mortgage interest and real estate taxes
for principal residence, vacation homes, and timeshares: 1098
Interest on loans for boats with berthing,
cooking and toilet facilities
Points or origination fees on home mortgages,
refinanced mortgages, and home equity lines of credit
Property tax bills for investment property
Medical expenses:
Receipts from doctors, dentists, optometrists,
prescription eyewear (including contact lenses and cleaning
solution), chiropractors, podiatrists, psychiatrists,
psychologists, routine and emergency hospitalization,
in-home nursing, alcoholism and drug abuse treatment
Prescription drugs, contraceptives (if by prescription),
prosthetics such as hearing aids and batteries, canes,
crutches, orthopedic shoes, walkers and wheel chairs,
improvements to home for disabled access
Miscellaneous: lead paint removal, special schools for a
handicapped child, special equipment for the disabled or
handicapped, travel mileage related to medical treatment
(must keep a vehicle log), special foods prescribed by your
doctor and taken in addition to your normal diet, lodging
while away from home under professional medical treatment
Medical Insurance: health, major medical,
dental, optical Tricare premiums, Medicare parts B and D
payments, Medicare and Tricare supplements, long term care, and
insurance for contact lenses. Note: premiums paid with money
excluded from payroll in an employer provided pre-tax plan are
not deductible as additional itemized deductions.
Charitable Contributions
All contributions to churches, synagogues, temples, CFC,
Army, Navy and Marine Corps, and Air Force relief societies,
United Way, most veterans organizations, etc. are
deductible. Individual receipts from the organization
acknowledging the donation are required for any single
donation of $250 or more and all cash donations regardless
of dollar amount. Get a receipt for all donations of
property; required where the value is $500 or more.
The Salvation Army publishes a high, low pricing guide
for donated items on its website. This guide can be
used to value donations of most household, sports and
personal items.
Donations of appreciated property such as works of art
and collectibles require a professional appraisal to
establish the value.
The IRS publishes a list of authorized charitable
organizations if you are not sure of an organization's
tax-exempt status
Out-of-pocket expenses related to charitable activities
Mileage for use of your automobile in charitable
activities - keep a vehicle log to substantiate the miles
Parking and tolls for use of your automobile in
charitable activities
Appraisal fees to value property donated to charity
Taxes
Car tax bills for cars, trucks, motorcycles,
boats, jet skis, motor homes, campers, etc.
Self-employed estimated tax payments
Foreign taxes
State and local income taxes
State and local property taxes
Investments
Keep all transaction notices from your
broker with purchase price and commission at the time you
buy stocks, mutual funds, and bonds. If you can't
establish the cost of your investment, you will pay tax on
the full amount of the future sale of your investment.
Penalty on early withdrawal of savings
Safe deposit and fireproof boxes
IRA trustee and administrative fees, if
billed separately
Financial planner fees
Investment interest
Passive losses
Worthless stocks or securities
Casualty
Theft or embezzlement losses
Gambling losses up to the amount of
winnings
Casualty losses from weather, fire,
flood, explosions, contamination, etc. not reimbursed by
insurance, government or legal settlement. It is
important to determine the fair market value of the asset
before the casualty loss and the fair market value of the
asset after the loss. If the FMV before and after the
loss are the same, there is no casualty loss deduction on
your tax return.
Work-related employee expenses
Business tools, including computers and
software
Residence utility bills (not primary
telephone line, except long distance calls for business) for
home office deduction
Depreciation on home computer to extent
used in business for your employer's convenience and not
reimbursed by the employer
Home office deduction
Union dues
Employment agency fees
Newspapers and trade journals purchased
to check employment ads
Resume preparation costs in connection
with looking for a new job in current profession or trade
Travel costs to find a new job in current
profession or trade, even if job search is unsuccessful
Uniform and work clothes, such as medical
scrubs and lab coats that cannot be worn as a substitute for
regular clothing. Note for military personnel: only the cost
of uniforms which are not a substitute for civilian clothes
can be deducted, i.e., those which cannot be worn off-base
or out of the immediate duty area. For example, Navy
shipboard coveralls. The following can be deducted without
regard to wear restrictions: insignia, cist of sewing
insignia on uniforms, tailoring uniforms, cleaning uniforms,
nametags for uniforms, medals, ribbons, and cost of
mounting, ceremonial swords when required as part of the
uniform.
Professional journals
Continuing education that maintains
present job skills, and the travel and per diem to
participate in the training
Employee contributions to state
disability funds
Business gifts maximum $25
Cell phones and monthly costs of business
use not reimbursed by employer
Passport fees for business travel
Cleaning and laundry bills on business
travel
Other
Tax preparation fees, including tax
preparation software and tax publications
Capital losses carried forward
Business losses carried forward
Alternative Minimum Tax (AMT) credits
Social security cards and birth dates for
every person listed on your tax return
