Good record keeping is a great way to help you save on your taxes and provide support if you are questioned by the Internal Revenue Service (IRS).
To maintain the most complete records, keep track of the three following areas:
Charity - Write a check and keep the receipt. For any contributions of $250 or more, get a written acknowledgement from the charity. A canceled check is not enough.
Travel - If you travel for medical care or for volunteer work, keep track of the miles traveled and the cost of tolls and parking.
IRA - Keep records of nondeductible contributions to an Individual Retirement Account (IRA) for at least six years after reporting the final withdrawal of funds from your IRA.
It's a good idea to keep your income tax records and their supporting records for at least six years following their due date.
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