Receipts for Taxes? | What Do You ACTUALLY Need to Keep?

[@peggymorse2266]

Thx for the info! Yes, I hoard receipts to help me remember what I spent money on each month. Is there an efficient app to scan these receipts so at the end of the month I can keep a running log of expenses? Also, what types of online subscriptions (ie, business education) can we deduct as an expense? Thx again!

[@KeeperTax]

Hi, Peggy! These are both great questions. For receipt scanning, we recommend our app, Keeper Tax: keeper.tax/e/kOM4DkDDHkb It's really efficient, because it'll actually scan your transactions for write-offs and automatically categorize them by business purpose. But you can also take a photo of a paper receipt and input it into the app that way. As for deductible business expenses, lots of online subscriptions will count, as long as they help you maintain or improve the skills you need for your current line of work! Here's an article that goes over this: www.keepertax.com/posts/what-education-expenses-are-tax-deductible

[@FreshSqueezedLightning]

I've been using Quickbooks Self-Employed App for years and it's so handy. Swipe for mileage which auto-tracks, scan receipts which auto attach to business expenses when you link your bank/credit card, and then you swipe left and right for business vs personal

[@lorixlee]

I made an app called Snaptobook exactly for this! Let me know your thoughts on it

[@kitkarson4226]

This is first time I am trying to do my own taxes. I was super scared. Now I have been learning a lot from you by binge watching your videos. Please keep them coming.

[@KeeperTax]

Thanks for watching, Kit!

[@DyLemmaOG]

my bank doesn't say what the purchase is for though.. useless

[@deepalmoon]

This lady is amazing. Better than any CPA, that I found on KZbin. She does it with a panache! Pretty Cool. Keep it up

[@themodestgoddess1645]

Thank You, Beautiful Genius! 🙏🏾 As I'm watching this video, I'm LITERALLY staring 👀 at a STACK of receipts RIGHT NOW! 😩🤦🏾‍♀️ This video was RIGHT ON TIME! PHEW! 😅👏🏾👏🏾👏🏾👏🏾💯

[@Dmartinez9959]

I exclusively use credit cards and I've been saying credit card statements are the best bookkeepers, for many years. Thanks for confirming this!

[@djavanjohnson4490]

I love the way her skin shines!

[@KeeperTax]

Tax magic keeps us young over here.

[@chriscampbell5679]

Wow! Great Video. Very informative! Young lady had great energy and knowledge as well.

[@DB-zh3ti]

If you are saying that the taxpayer does not need to keep receipts, then why did the IRS ask for receipts when my client got audited?

[@KeeperTax]

Good question! We're talking about physical receipts, which can easily get lost, shredded, chewed up, or faded past the point of illegibility. You do want some kind of transaction record in the case of an audit! Credit card statements and bank statements work, and the IRS will accept digital records like these.

[@Mandi1585]

Most company’s have the option to track your transactions for you, such as Kroger. When you input your Kroger number (or scan your key chain) it automatically inputs your items into their system, which can be viewed on their website. Even Walmart has a way to automatically input your bought items into your Walmart account if you connect whichever card you would normally use. 🙂

[@mike2959]

The IRS says constantly “ordinary and necessary”. I think that’s only half true. I own a restaurant. I get audited. I have $4800 Home Depot charge. I don’t have the receipt but provide my credit card statement but the agent says this won’t substantiate the write off. I asked why, he clearly stated he doesn’t know what I purchased. It could have been something for my home. I produce the receipt. It is a commercial upright freezer. He did the same thing with some tools. He said the same thing. That he didn’t think that a $200 battery drill was ordinary and necessary for a restaurant. I said I would just appeal. Dam right it’s nesassary. I love how they get to pick and choose what’s required and not required to run my business. To do the repairs and maintenance of over 100K of equipment. Just me typing this is business time and use and this alone has monetary value.

[@yourfriend4170]

Ong thank you! So my food statements are ok to go without receipts? It all was bought through Apple Pay and in food apps usually but doesn’t go far year ago 😢

[@consumerdebtchitchat]

Sweet Jesus I just started my LLC and was wondering if I needed to save my receipts by hardcopy and if I'd be arrested if I didn't😂 . I was seriously asking a friend if I could get in IRS trouble for just saving them digitally. Thank you!!!!

[@burisngag7529]

Thanks 👌 im about to file my tax on keeper tax. First timer here 😁

[@screamfan]

Love your videos and helpful info; thank you!

[@randomnightcore6492]

Thank you!!! Just made my life easier!!

[@ydxyrbc]

Should we keep bank accounts and credit cards seperate from our personal accounts so everything would be a business expense then?

[@brittklin1989]

My entire purse and jammed packed with receipts 😂😂 thank you for this!

[@KeeperTax]

You're so welcome, Brittany! Enjoy freedom from receipts 🌟

[@MostlyurbanwithKerryandDavid]

Great video. Many thanks for this.

[@ThesiKCOne661]

Wow great info I was stressing

[@chelsea7229]

But credit card receipts don’t show what you bought, just where you bought it. That doesn’t matter to the IRS?

[@KeeperTax]

Hi, Chelsea! Great question. In general, the IRS doesn't care about the item-level transaction (one large margarita pizza and a side salad) - they care about the category of the business expense (business meal). This IRS publication goes over the details in the "What Are Adequate Records" section: www.irs.gov/publications/p463 Note that it's enough to show the "essential character" of your expense, and that expenses under $75 (except lodging) don't require documentary evidence!

[@teresalee2302]

Is there federal tax that needs to be paid on Airbnb Vacation Rental besides the State outlines paid to DOR and local county taxes?

[@KeeperTax]

Rental taxes can be tricky sometimes. Check out this article for AirBnB hosts for more info: www.keepertax.com/tax-write-offs/airbnb-hosts

[@soxpuff]

Is there a way to itemize expenses and write offs when first using Keeper Tax on Desktop? I understand the app is an incremental tool thoughout the year, but when first using it, there appears to be time required for oragnization and doing it on the app is severely annoying. Am I missing something.

[@KeeperTax]

Hi! If you're having trouble with the app, you can reach out to [e-mail]. They'll help you get squared away!

[@ultimatist]

Awesome news!

[@callie9343]

I'm just wondering do you add the taxes too or just the price of the item

[@KeeperTax]

Great question, Callie! You include the sales tax.

[@Aprdbates24]

How do I get those funds back to my account so I can use it?

[@marik1104]

I've always filed my taxes on TurboTax, but I worked full-time as an employee from Jan-Oct 2022 in PA. I just moved to Texas and am now a 1099 employee. So, my question is-should I still keep track of my itemized expenses as a 1099 employee to help lower my tax bill? I was thinking I'd just take the standard deduction since 10 months were spent working for an employer, but I learned from one of your videos that I should still deduction my itemized expenses for my 1099 job? Do you think TurboTax is still a good way to file my taxes now that they've become more complicated? Please help! Your videos are very helpful. Thank you so much!

[@KeeperTax]

Hi, Mari! So glad you watched our other video - the standard deduction can get pretty confusing for freelancers. The answer is yes - you absolutely should still track your business expenses for your 1099 job, since you can take those deductions on top of the standard deduction! You'll still have to pay self-employment tax on the two months' worth of work you did on 1099, so it makes sense to try to lower that tax bill! If you'd like to try a tax filing app that's more geared for people with 1099 income than TurboTax, the Keeper app can actually file your taxes in addition to helping you track your business expenses! You can check it out here - we have a free trial for the expense-tracking experience: keeper.tax/e/kOM4DkDDHkb TurboTax can be a convenient solution for people who have simple tax returns, but you've put your finger on it - it feels less helpful out of the box for someone who's tax situation is a little more complex. Here's one freelancer's experience using TurboTax: www.propublica.org/article/is-turbotax-free-what-about-easy-not-for-this-freelancer

[@marik1104]

Thank you so much for your response. I will check out the app and website. Truly appreciate your videos and find them so helpful for a new 1099-er like me! 😊

[@KeeperTax]

@@marik1104 You're so welcome, Mari!

[@dream.machine]

Thank you! 😊 I Subscribed 😉

[@michaelvadney5803]

Excellent videos, thanks

[@KeeperTax]

Thank you Michael! We save you some space in your wallet.

[@assiradarling8981]

I ordered things online for the business do I need receipts? Also I wrote checks for my self from a business account do I need receipts for that?

[@KeeperTax]

Hi, Assira! If you ordered things online, no receipt needed - your order confirmation will do. Canceled checks from your business account can also take the place of a receipt, so you won't need an actual receipt on top of it. Here's what the IRS actually says about keeping records: www.irs.gov/businesses/small-businesses-self-employed/what-kind-of-records-should-i-keep You'll note that invoices and canceled checks both count as supporting documents for business expenses, just like traditional receipts!

[@assiradarling8981]

@@KeeperTax sorry what do you mean by canceled checks?

[@KeeperTax]

@@assiradarling8981 Just a check that's been cleared by the bank, meaning it's already been deposited!

[@TheNomadicWanderlust]

QUESTION:: I have a 'TRAVEL KZbin' channel primarily focusing on Mexico - where many of the restaurants/meals I FILM FOR COTENT only accept CASH.... is this considered a “Reasonable & Ordinary Expense” ... or because it's my actually CONTENT TOPIC does it fall into a different Tax Category , and therefore also have different RECEIPT RECORD requirements? Especially if it's over $75... Part of my confusion is I know there are IRS rules related to BUSINESS TRAVEL EXPENSES.. but what is TRAVEL & the cost of it, IS YOUR BUSINESS? IS YOUR CONTENT? Does it fall under the general "BUSINESS EXPENSE" rules then -- as in 1099 - SCHEDULE C Box 27a (per your website) VS SCHEDULE C Box 24a (per your website)? Will Keeper help me sort this out and track it properly for tax reporting? THANK YOU!!!

[@BrookeBelle13]

She’s the best I need her app asap

[@KeeperTax]

Thanks so much for watching, Brooke! If you haven't tried it out already, you can give the app a try here: keeper.tax/e/kOM4DkDDHkb :)

[@bredmond6479]

I have a question about mileage, if i use an app like doordash can i start my tracking my mileage from when i leave my house or when i get to the pickup destination?

[@KeeperTax]

Hi Brian! As a general rule, business-related mileage excludes time you spend commuting. If your app is turned on when you leave your home and you're logged in/can accept orders, you're good to count those miles! However, if you're driving home from your last order of the day and aren't accepting more orders, those miles wouldn't count as business-related.

[@angelicfazos]

this was v helpful thank u

[@mienmombo-alpha]

Great info!!!

[@pongop]

Thank you! Super helpful!

[@sofiacasas-cordero5766]

Thanks a lot for the info! Question: I received a severance payment from an international company (severance payments are not taxed by that country) but I don't have the formal paper or pdf anymore that verifies the amount I received. I do remember how much money it was. Does it matter if I don't have the formal paper to do the tax filing for that year? Appreciate the help!

[@KeeperTax]

Severance pay is taxable so you should be sure that you're following the IRS guideline when filing. www.irs.gov/pub/irs-pdf/p4128.pdf

[@laurendeah4196]

I have been taking pics on my phone of my receipts and recording them in a spreadsheet. But here's a question: If I go to a coffee shop for their internet cause mine is cutting out during zoom meetings -- can I still deduct the cost of my coffee even if the business meeting is virtual/zoom? (I mean once or twice isn't a big deal but if I have to do this on a regular basis the price adds up eventually.) -- Thanks! You rock. :)

[@KeeperTax]

Hi, Lauren! Unfortunately, that wouldn't be a write-off. (The IRS hasn't really caught on to the reality of Zoom business meetings yet.) To be able to write off your coffee shop expenses, you'd need to actually physically have a meeting there. I know that's not the best news. The silver lining is, you can absolutely write off part of your internet since it sounds like you work from home. That'll defray the costs if you find yourself having to upgrade. Here's an article where you can learn more: www.keepertax.com/posts/how-to-deduct-internet-expenses

[@akiraedwards6509]

then why when audited do they ask for receipts ?

[@KeeperTax]

Good question, Akira! "Receipts" is basically a shorthand for "supporting documents proving you made a purchase." That's what you'll be asked for in the event of an audit. Those supporting documents CAN be paper receipts, but they can also include other things, including credit card statements, canceled checks, and invoices from contractors and suppliers.

[@Rankings-Revealed]

Thank you!

[@weedguys2384]

Whew!

[@langridgeehennos6059]

You are lying

[@KeeperTax]

Hi, there! The IRS itself mentions that paper receipts are only one possible form of supporting documentation for business expenses, among many. Other possible supporting documents include canceled checks, invoices, and event account and credit card statements. So traditional paper receipts aren't in fact necessary - you can prove your purchases in a number of different ways! You can read more here: www.irs.gov/businesses/small-businesses-self-employed/what-kind-of-records-should-i-keep