So Many Receipts!

[ZB4]

I have a question (probably foolish/ obvious to others&#128524 for this coming year. I was wondering why with the new standard deduction do I need to continue itemizing deductions? I have less than the 24k we're allowed for the standard deduction we're eligible for so itemizing wouldn't make sense. And if we don't itemize is there any reason to keep all these receipts?!

[TomCopeland]

Originally Posted by ZB4

I have a question (probably foolish/ obvious to others&#128524 for this coming year. I was wondering why with the new standard deduction do I need to continue itemizing deductions? I have less than the 24k we're allowed for the standard deduction we're eligible for so itemizing wouldn't make sense. And if we don't itemize is there any reason to keep all these receipts?!

Many more providers will take the standard deduction and no longer itemize under the new tax laws. If so, there is no reason to keep receipts for medical expenses, charitable contributions, etc. Since you can still deduct the business portion of property tax and mortgage interest as a business expense on IRS Form 8829, save those receipts.

[ZB4]

Thanks so much for your help Tom. So I don't need to keep track of things like craft materials and curriculum purchases? How about food, same ? Wow...30 years of keeping all this stuff yearly...can I just say I'm loving this, it makes my life so much easier!

You still need to retain receipts for business expenses like curriculum etc because you write those off on Schedule C. Itemizing is personal deductions. Tom can probably speak to this more clearly.

[TomCopeland]

Originally Posted by ZB4

Thanks so much for your help Tom. So I don't need to keep track of things like craft materials and curriculum purchases? How about food, same ? Wow...30 years of keeping all this stuff yearly...can I just say I'm loving this, it makes my life so much easier!

No. You must save your business receipts for at least three years, in some states four years. This includes receipts for craft materials, curriculum, food (if you use the actual expense method), car, toys, furniture, household items, etc. When you use the standard deduction you must still save all business receipts.

[ZB4]

Oh okay, I understand what you're saying. This is why I don't do my own taxes. Lol. This year I'm supposed to be getting a rather large refund, as I didn't even make 24k, low enrollment but still had pretty high expenses as I purchase my curriculum (for 6 kids) and a lot of my materials at the beginning of the year in anticipation of full enrollment, which never happened. So I ended up operating at a loss....and my hubby is W2 with extra taken out to offset my taxes....we filed 4/11/19 and still haven't received it.