Tax Stuff You Need to Keep in Your Records

Be sure and BOOKMARK this for future reference!
Here are some suggestions that I found in The Ernst & Young Tax Guide 2007 of records that you should keep on hand in addition to your income tax return.

I recommend that you…

1. Get yourself a hanging folder and label it for the tax year
2. Get three manila folders labeled with the following three categories: Income, Expense, and Credits
3. File all of your records according to which manila folder they belong in
4. Your accountant will LOVE you

INCOME

Wages & Salaries - Form W-2

Interest Income - 1099-INT, 1099-OID or Substitute 1099, such as a broker statement or year-end account summary

Dividend Income - 1099-DIV or Substitute 1099, such as a broker statement or year-end account summary

State Tax Refunds - Form 1099-G, state income tax return

Self-Employment Income - Sales slips, invoices, receipts, sales tax reports, business books and records, 1099-MISC

Captial Gains and Losses - 1099-B or Substitute 1099, such as broker statement or year-end account summary showing proceeds from assets of securities or other capital assets.

IRA Distributions - 1099-R, year-end account summary, Form 8606

Pension and Annuities - 1099-R, records of contributions

Rents - Checkbook, receipts and canceled checks, and other books and records, 1099-MISC

Partnerships, S Corporations - Schedule K-1, record of unused passive activity losses

Estates, Trusts - Schedule K-1, copies of last will and testament including codicils, Form 56-Notice Concerning Fiduciary Relationship, Form 1310-Statement of Person Claiming Refund due a Deceased Taxpayer.

Social Security Benefits - Form SSA-1099

Royalties - 1099-MISC

Unemployment Compensation - 1099-G

Alimony - Divorce settlement papers

Miscellaneous Income - 1099-MISC and other records of amounts received

EXPENSE

• Domestic Employee Expense - Canceled checks, state unemployement tax payments; see Chapter 40 - What to Do If You Employ Domestic Help in the book


• Self-Employment Expense - Bills, canceled checks, receipts, bank statements, all business books and records


• IRA Contribution - Year-end account summary, deposit receipt


• Keogh Contribution - Year-end account summary, deposit receipt


• Alimony - Divorce settlement papers, canceled alimony checks


• Medical and Dental Expense - Bills, canceled checks, receipts, pay stubs if employer withholds medical insurance from wages


• Taxes - Canceled checks, mortgage statements, receipts, Form W-2


• Interest Expense - Bank statements, mortgage statements (Form 1098), canceled checks


• Charitable Contributions - Canceled checks, receipts, detailed description of noncash property contributed


• Miscellaneous Deductions - Receipts, canceled checks, or other documentary evidence (see Chapters 27 - 29 in the book


• Casualty and Theft Losses - Description of property, photograph of damaged property, receipts, canceled checks, policy and insurance reports


• Exemptions - Birth certificates, Social Security numbers

CREDITS

Child and Dependent Care - Receipts, canceled checks and name, address, and identification number of care provider

Estimated Taxes - Canceled checks

Foreign Taxes - Form 1099 DIV

Withheld Taxes - Forms W-2 and 1099

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