Do you keep ALL of your receipts for taxes?

mikea

mikea

Touchdown! Greaser!
Gone West
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iWin
I wuz wondering.

Being a pack rat I have pretty much every receipt for the year from where you get receipts.

I knew a guy who used to add up the sales tax he actually paid and claimed that in his 1040.

I just looked and it seems that you can claim real estate taxes OR sales taxes when you itemize, not both, and you go with whichever exceeds your standard deduction, or AGI % or whatever.

Does anybody find it worthwhile to add up all the sales tax payments and claim it?

We do live in the highest sales tax areas here.

I would guess it would make sense after you pay sales tax or use tax on a major purchase like a car or plane.
 
Nope. I don't even ask for one. If they give me one I throw it away. I *DO* look at their fingers as they punch the total into the credit card machine and have caught them making a mistake before. I also try to glance at my checking account for errors every month or two.
 
If it's worth the however many hours of your time you spend keeping the receipts, then adding them up, to determine what the number is then fine. My time is worth more than that. I'll just take the standard deduction and let the government keep the few extra bucks that they'd be refunding me. :)

My accountant says to keep proof of sales tax for the high dollar items (>$500), but that's it.
 
It was worth it for me in Texas. There is no state income tax, so sales tax is deductable.

Mike, the tax deduction is EITHER state income tax OR state sales tax, IIRC. Property tax is deductable regardless.

Virginia, I'll be better off taking the income tax deduction.
 
wsuffa said:
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Mike, the tax deduction is EITHER state income tax OR state sales tax, IIRC. Property tax is deductable regardless.
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Right. Thanks, Bill.

I was amazed that i managed to understand about all of it but it's soooooo complicated. :D

I had some surprises - like - I thought that all of the expenses in buying a house were deductible. Nope. Not the loan application fees and title search, etc. Bummer.
 
Unless I spent 3/4 of my gross income on taxable purchases, it is pretty hard for me to come out ahead by claiming sales tax.

Michigan Income tax 4.something %
Sales tax 6%
 
I think you can claim sales tax or state and local witholding?

The sales tax actual can make sense if you do something like purchase a Car with a relatively low Witholding deduction.
 
Greebo said:
Not for personal, but we do for business.
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Yeahbut, all business expenses are deductible. You just expense what you paid, including the tax. You don't list the sales tax twice.
 
As a resident of TN, we save receipts. Sales tax is deductible on the 1040 as we do not have an income tax.
 
You can claim what ever you want, but if you ever get audited by the IRS you are going to have to have all of the receipts in order to substantiate that deduction. You need to keep them for at least 4 years. If you have deductions that you cannot substantiate the IRS will expand the audit to include the last 3 years. If you have several items that you cannot show receipts for the IRS can and will fine you and you'll have to pay penalties, interest, and the tax.

If you can prove the unsubstantiated deductions were not intentional (at this point in the audit it is) they can prove it was fraud. If you can't prove fraud (Yes, with the IRS you are guilty until proven innocent) you will go to jail.

When you sign the tax return you are stating to the IRS (and the Federal Tax Court System) you have conformed to their rules. Failure to abide by their rules because you didn't know them is not an excuse.

Don't screw around with the IRS. Keep the receipts if you itemize. Be able to prove every deduction you claim.
 
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mikea said:
Being a pack rat I have pretty much every receipt for the year from where you get receipts.

I knew a guy who used to add up the sales tax he actually paid and claimed that in his 1040.

Does anybody find it worthwhile to add up all the sales tax payments and claim it?
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I'm with Bill; I use the standard deduction. Not worth it to me, for the amount I spend retail, to go to the effort. If I was going to do so, though, I think I'd sit down over a TV show and adding machine and tally them by month with a summary sheet, in an envelope by month. That way, at tax time, I would only have to add up 12 figures, not several hundred/thousand.
 
Geico266 said:
You can claim what ever you want, but if you ever get audited by the IRS you are going to have to have all of the receipts in order to substantiate that deduction. You need to keep them for at least 4 years. If you have deductions that you cannot substantiate the IRS will expand the audit to include the last 3 years. If you have several items that you cannot show receipts for the IRS can and will fine you and you'll have to pay penalties, interest, and the tax.

If you can prove the unsubstantiated deductions were not intentional (at this point in the audit it is) they can prove it was fraud. If you can't prove fraud (Yes, with the IRS you are guilty until proven innocent) you will go to jail.

When you sign the tax return you are stating to the IRS (and the Federal Tax Court System) you have conformed to their rules. Failure to abide by their rules because you didn't know them is not an excuse.

Don't screw around with the IRS. Keep the receipts if you itemize. Be able to prove every deduction you claim.
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I'm curious. I assume that increased tax due to any denied deductions also trigger penalties and interest. Can can get the penalties waved if you had filed in good faith?

What happens with business expeneses for cash (like fast food meals) without receipts? Wouldn't the IRS back off for small anomalies? Wishful thinking, I guess. (I know you can get a receipt at McDonalds.)

Personally, I don't write down a number that I don't have a document for. :rolleyes:
 
I don't personally keep anything to remind myself what I've spent...I DO look at the CC and bank statements occasionally...













My WIFE on the other hand is a CPA. SHE looks at everything (and I do mean EVERYTHING:rofl:).

This has worked out very well fo me; She keeps telling me I need to go fly more to get the cost-per-hour down to an acceptable level!:eek:


Why yes Dear, I can do that...:smilewinkgrin:


Chris
 
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