Tax season goes faster, and costs less, when the paperwork is already in order. These are the five kinds of records we ask clients for most often. Keeping them organized as the year goes will make your appointment quicker and help make sure no deduction gets missed.
1. Income records
Keep every 1099, invoice and deposit record. If you run a business, a simple monthly summary of income by source is even better.
2. Receipts for deductible expenses
File receipts by month or by category. A photo on your phone counts, as long as it’s legible and you can find it later.
3. A mileage log
If you drive for business, note the date, destination, purpose and miles for each trip. Reconstructing a year of driving from memory rarely holds up.
4. Payroll reports
Employers should keep payroll registers, quarterly filings and copies of W-2s and W-3s together in one place.
5. Last year’s return and any notices
Bring your prior-year return and any letters from the IRS or the New Mexico Taxation and Revenue Department, even if you think they’ve been resolved.
How long should you keep them?
The IRS generally recommends keeping records for at least three years after you file, and longer in some situations. The IRS recordkeeping guide has the details, or ask us what applies to you.
