Tax Returns- What Kind of Records Should I Keep?

It is important to keep all the documents used to determine your tax returns.  A record should be kept of your income and a record should be kept of your expenses which are being included in some way on your tax return.  Your records should be kept by year in a safe place.  When your tax return is completed, a copy of the return should be placed in a file with the information used to prepare the return and kept in a safe place.

If you choose to use electronic files, care should be taken to back up and protect these records.  If these are destroyed, you are still accountable for providing the IRS with the information.

Examples of the records to keep include-

Income- Form W-2, Form 1099, Bank Statements, Brokerage Statements, Form K-1

Expenses- Sales Slips, Invoices, Receipts, Cancelled Checks or other Proof of Payment, Written acknowledgement from qualified charities

Home- Closing Statements, Purchase and Sales Invoices, Proof of Payment, Insurance Records, Receipts for Improvement Costs,

Investments – Brokerage Statements, Mutual Fund Statements, Form 1099, Form 2439

We are here to help you use all your documents to your benefit.

Call today. Todd Courser 810-245-0813.