| When preparing your taxes, the goal is obviously to | | | | 2. Dependent Support. If you claim someone as a |
| deduct every last penny you can. Many people are | | | | dependent, you may be in for a surprise. You need |
| amazingly good at it. Just keep in mind you need | | | | to be able to prove that you provide more than 50 |
| receipts for the deductions. | | | | percent of the support for that person. Happily |
| List of Tax Records To Keep | | | | married parents usually do not have problems, but |
| Filling out and filing tax returns is really a quest to | | | | the IRS likes to zing divorced parents on this issue. |
| conquer the mountain. In this case, the mountain is | | | | Keep records in the forms of receipts, checks and |
| your gross income. The IRS helpfully lets you know | | | | invoices in such a situation. |
| this by making you write it down right away and | | | | 3. Home Repair Receipts. No, you do not have to |
| repeat it in various places on your 1040 form. How | | | | show the receipts each year. The issue really comes |
| nice of them. | | | | up when you decide to sell your home. To cut your |
| To conquer the mountain, you start shaving it down | | | | tax bill, you should claim all repairs and improvements |
| by claiming deductions. The more you can claim, the | | | | you made since owning the home. Guess what, you |
| better off you are. Some people have lots of | | | | need receipts to support those claims. In simple |
| deductions that help in this regard. Others create lots | | | | terms, save every receipt related to your home or |
| of interesting deductions to do the same. Whatever | | | | risk losing the deductions. |
| you approach, keep in mind you need receipts to | | | | 4. Medical Expenses. Health care costs are out of |
| support those deductions should the IRS ask to see | | | | control as we all know. If you are claiming deductions |
| proof. Here is a list of common tax records you need | | | | related to medical care, keep those receipts and bills. |
| to keep to support those deductions. | | | | Obviously, there are other areas where you need to |
| 1. Mortgage Interest Payments. One of the great | | | | keep receipts, but these are some of the more |
| things about owning a home is the mortgage. Oh, | | | | common places where people fall down on the job. In |
| wait. The great thing is the mortgage interest | | | | general, you should keep all the receipts for three |
| deduction, not the mortgage. To prove the amount | | | | years, but I suggest doubling that number. With |
| you have been paying the piper, you should keep the | | | | home repair or improvement expenses, you need to |
| form 1098 you receive from your lender each year. | | | | keep them for five years after you get around to |
| Given the fact the deduction is usually sizeable, make | | | | selling your home. |
| sure to keep it in a safe place. | | | | |