What Receipts to Keep for Personal Taxes?

The gross receipts are the ones that show all your revenue for that year, without retracting anything from the sum. Therefore, you should keep any receipt that shows the amounts you received, and where you received it from. It this category you will have all of the invoices, deposit information, documents from receipt books, POS reports, and so on. It’s important to know that for regular expenses paid by credit card, you no longer need to save the receipt. So, any kind of documents that show your income for that year should be kept. Having these will help you correctly file your taxes, but also to accurately calculate eligibility for deductions or credits.

The IRS might ask to see proof that the income you reported is the correct one. If you have the receipts, you can prove that you didn’t underreport. But, besides these more technical benefits; you have some practical benefits too! It helps you track the way your business is going over the year, and over the years. It can be easier to make decision about what you need to purchase, what to invest in, and what works best for your business. It’s very easy to overspend if you are not tracking every cent. At tax season, you will be happy that you were organized at throughout the year. Also, we, at Proledge, have an FAQ page that might help answer some basic questions.

Deductible expenses are the expenses that can be deducted from your income when you are filing taxes. This is great because it reduces the amount of taxes that you have to pay. Depending on a few factors, there are different expenses that you can deduct. Qualified deductions include money that you paid for yourself, your child, or even your spouse. But, some of the deductible expenses available for personal taxes are:

• Medical bills (Dental receipts are included)
• Student loan interest
• Daycare expenses (If you have a child)
• Mortgage interest
• Property tax insurance

This is why it’s important to keep track of all the money that comes in and out of your wallet. Keeping every receipt will make it easy for you to identify deductible expenses. No one will do this for you, and it’s your right to deduce those expenses. A lot of people don’t know about this when paying taxes. Whether we are talking about business, taxes, or just life in general, organization is an important skill to have. You should not depend on a bookkeeper; these are things you should know how to do!