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Tax Stuff You Need to Keep in Your Records
By JLP | November 30, 2006
Be sure and BOOKMARK this for future reference!
Here are some suggestions that I found in The Ernst & Young Tax Guide 2007
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 (see the book
- 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
- 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
Topics: Organization, Tax Planning, Taxes |