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
- 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 (see the book for more important details).
- 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. Again, see the book for more important details.
- 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
- 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
- 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