Taxes: Do You Make Copies of All Your Receipts?

[legomom922]

On MMk, they suggest making copies of all reciepts because they tend to fade and you need them in a audit. Does anyone do this?

[mac60]

Never. I can't imagine the time involved, the printer ink and paper cost. If they fade I guess I don't feel it is my problem. I can't control things like that. I kept them, that is the best I can do. I haven't noticed too many of my receipts fading anyways, other than some cheap places like Family Dollar and Dollar General, but can usually still make them out. Forgot....the storage of another set of receipts. No thanks.

[DCMom]

I hear this in every tax/recordkeeping class I have taken. I just shredded receipts from 2002 and most of them were still pretty legible; some fading but still legible. I don't worry too much about it because I put everything on a credit card and pay one bill at the end of the month. That creates a secondary source of proof.

I'm with mac60~can you imagine the time it would take to copy EVERY receipt?? The ink and paper would be a huge expense in itself. If you notice some receipts are prone to fading, then I would copy those but not every single one.

[Childminder]

NO way! Save a tree. Besides I'm busy taking care of children not accounting. I did see a machine that scans them and saves on disc but no way can I see the need to waste the money or time.

[tenderhearts]

I dont' give receipts, unless they pay cash. or they request it. I keep a log for each family and it has the date they paid, how much and how they paid. I total it at the end of the year and that's what I keep with my tax info stapled behind it is their ins and out sheets and I have one for each family.

[Childminder]

I think she is talking about receipts of items purchased.

[legomom922]

Targets seem to fade very quickly. I was also told that a credit card statement is not a reciept, because it only lists the store, not what you bought. I have also heard that a scanner is a very cheap & quick way to copy them, but I dont have one anyway.

[DCMom]

Originally Posted by legomom922

Targets seem to fade very quickly. I was also told that a credit card statement is not a reciept, because it only lists the store, not what you bought. I have also heard that a scanner is a very cheap & quick way to copy them, but I dont have one anyway.

I tried the scanner route one year ~ of course that was the year the hard drive crashed and I lost all my scanned receipts so painstakingly scanned in...

I have seen years and years worth of receipts and it's a very small percentage that fade to the point of not being legible in some way. Keep them out of sunlight, don't store them in a damp place, absolutely do not use a highlighter directly on the printing and I don't write on them in ink. I've even heard that hairspray keeps them from fading. Even if it does fade, there still will be some identifying information corresponding to what you have written off. I do record the amount/category I write off, in pencil on the receipt. I do micro-record in Minute Menu, but it's much less time consuming and cost effective than copying every receipt. The credit card statement just provides back up proof to the possibly-faded-years-in-the-future receipt, in the event of a possible audit.

Bottom line is, I'm not going to devote any more time than I already do to bookkeeping

[TomCopeland]

I know nobody likes to do any more record keeping, but faking receipts can be a problem if you are audited. Blank pieces of paper are not "adequate records" and the IRS won't be sympathetic.

You could ask the store to change their ink or paper or ask to make a copy of the receipt in their store before leaving. Or you could copy the receipt. Or you could scan the receipt (NeatReceipt is one - from Amazon) into your computer.

You could also wait a year or so before looking at your receipts to see if any are fading and only copy those that are fading. You must keep your receipts for at least 3 years after filing your tax return.

There's no easy solution to this.

Tom

[legomom922]

Thanks Tom! Bottom line is I guess to make copies of those reciepts, even if it is a pain..

To save some paper, you could just wait until you have enough receipts to cover one page and make a copy.

[Sunchimes]

I didn't do this with my last business. I keep receipts in envelopes, inside a plastic container, in the dark attic. I haven't noticed any fading.

However, I get the feeling that day cares are audited more frequently than my last business, so I've started scanning them. I scan 3 or 4 at a time and save it to a file called something like 2012/january/receipts. I don't really have that many receipts each month, so it isn't very time consuming. I have my computer backed up with Carbonite ($55 a year), so even if my computer crashes or my house burns, I can still get to the receipts. I don't print them out.

I also scan the pages from my Calendar Keeper at the end of each month and save them to the computer, just in case.

[AnythingsPossible]

I have been contemplating buying a scanner for this purpose. I have noticed that the reciepts from our local big box store have been fading very quickly. I have ones from January of this year that are already fading. Don't know what exactly is going on there.
I would do as the previous poster said, scan and save, but not print them out.

[icaredaycare]

i was going to make a tax thread, but since the topic is here, ill just continue.

do you guys use accountants, or do you guys do ur own taxes?

I use an accountant, because I'm not good with numbers, plus accountants are usually up to date with new tax write offs, and such. My accountant helped me set up a daycare debit card, in which I never need to save paper receipts. All my taxes are just done through my bank statements.

[Blackcat31]

Originally Posted by icaredaycare

i was going to make a tax thread, but since the topic is here, ill just continue.

do you guys use accountants, or do you guys do ur own taxes?

I use an accountant, because I'm not good with numbers, plus accountants are usually up to date with new tax write offs, and such. My accountant helped me set up a daycare debit card, in which I never need to save paper receipts. All my taxes are just done through my bank statements.

I pay an accountant. There are way too many complicated formulas and other stuff like adding and subtractig (LOL!! ) involved so I hire someone to do mine. I, personally, would NEVER attempt to do my own taxes.

Kudos to those of you that do but tax stuff is waaaaaay beyond my comprehension.

I pay my accountant around $200 to do mine (and DH's since he is self-employed as well) and IMO, it is well worth it. Plus, I can use my expense of hiring a tax professional as a deduction the next year.

[icaredaycare]

200 is really cheap! are you filing individual taxes only? mine is 600 but it's because they're filing both my corporation, and my individual for me.

[Blackcat31]

Originally Posted by icaredaycare

200 is really cheap! are you filing individual taxes only? mine is 600 but it's because they're filing both my corporation, and my individual for me.

Well, I don't know because my tax lady does it all. I don't understand any of that stuff...

Both my Dh and I have our own businesses so she has to do both of our schedule C's and everything else.

Neither of us are LLC, Corporation or anything other than me having an EIN. DH is a cabinet/furniture maker that works from his woodshop at home making custom pieces.

[icaredaycare]

not sure if i should start another thread, but it brings me to the question... How many of us here are incorporated? I was told corporations would help me lower my taxes, and it would help protect my assets.

if it does seem like i'm thread jacking...i apologize and ill start a new thread.

[Blackcat31]

Originally Posted by icaredaycare

not sure if i should start another thread, but it brings me to the question... How many of us here are incorporated? I was told corporations would help me lower my taxes, and it would help protect my assets.

if it does seem like i'm thread jacking...i apologize and ill start a new thread.

Actually it is a good topic to discuss, especially at tax time.

I think you should go ahead and start another thread.

That way it can get tagged appropriately and others who are wondering or having the same questions can easily reference it.