Keeping every Panera and 7-11 receipt and bringing your wad of receipts to your tax help appointment is unnecessary and slightly excessive. But how do you know which receipts to keep and which ones are okay to throw away? Here are some general rules to follow.
- Keep medical records if you are planning on deducting your medical expenses from your income tax. This includes co-pays for medical, vision or dental care, premiums for medical care, the cost of eyeglasses, prescription medicine, contacts, breast pumps, wheelchairs and more.
- You can also often receive credit for childcare, so be sure to keep documentation for any care you purchase for a dependent under 13 or a disabled spouse or dependent.
- Keep documentation for work-related expenses that were not reimbursed, self-employment expenses and receipts for any large purchases, such as a car, home addition, RV, etc. Feel free to throw away receipts for smaller items like lunch out with your friends or a new pair of shoes.