It is that time of year again – time to start gathering all your records and preparing to do your taxes or have them done. So what do you need to keep for records? Well here is a shortlist for your reference.
- We all use ATM machines nowadays. You simply keep the receipts until you balance your checkbook. In my case I just have the receipts emailed to me and I end up keeping them all anyway.
- We all definitely shop too – keep your sales receipts until you are sure you do not have a need to return the product(s). Also if you have purchased any type of warranty or extended warranty – keep those receipts until the warranty expiration date.
- Income Tax Returns – Keep for at least 3 years.
- Medical Bills – Keep for at least 3 years.
- Cancelled Insurance Policies – Keep for at least 3 years.
- Home Sales Records – Keep for at least 3 years.
- Stock Sales Records – Keep for at least 3 years.
- Any documentation that supports your income or deductions on an income tax return should also be kept for at least 3 years.
- Home Improvement records should be kept for 3 years.
- Annual Investment Statements should be kept for 3 years.
- Loan Records – Keep for 7 years past the date the loan is satisfied.
- The following records should be kept as long as the items are not expired: Contracts, Insurance Documents, Stock Certificates, Property Records, Records of Pensions and Retirement Plans, Stock Records, Car Titles, Property Tax Records and Disputed Bills.
- Items that you should keep FOREVER include: Adoption Papers, Death Certificates, Social Security Cards, Records of Paid Mortgages, Marriage Licenses, Birth Certificates, Military Service Records, and Wills.
Now you know exactly what to keep and how long. For us, we keep our records in a safe but some people may opt for a safety deposit box but in any event, you should make sure the records you MUST keep are kept somewhere as safe as possible.
There are many tax deductions that are available for anyone and then there are so many that are available if you have your own business. Research and get all the deductions you can legally claim. Working with a tax attorney is your best process.
Then – how are you going to file your taxes? Sure you could hire someone to do your taxes for you and in some cases that may be the best option. But in most cases, you can easily get your taxes done with the help of Happy Tax! Happy Tax is a high-end concierge service that gets you expert CPA Tax Preparation that is 100% guaranteed. And should you for some reason get audited – they are able to help with their full audit department. Their tax preparation takes 15 minutes or less – all you need to do is download the app and find a local rep. They offer pricing that is all-inclusive and predictable based on your needs. Do you own your own business? They have it covered and can meet those needs too.
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One thought on “It’s Tax Season Once Again – Tips For Tax Time”
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