![]() ![]() Physical therapy and some alternative therapies are also deductible. Medical receipts: Keep proof of any prescriptions, dental and medical bills paid, plus insurance premiums paid out of pocket. Now that you know to keep both the credit card statements and the receipts here’s a more detailed look at the various types of expenses for which you will need to document. And given smartphones and easily accessible file hosting services such as Dropbox, this solution is more practical than ever. The good news is that the IRS does allow digitized receipts. For example, was that $35.67 you spent at Wal Mart for office supplies for your business, or was it for groceries? Therefore, your safest bet is to keep both. And just saving the credit card or bank statement does not show what was purchased. Just saving the receipt may not show who made the purchase. In addition, you will probably need to provide documentation that it was you (or your business) that made the purchase. To support a deduction, you will need to show what you purchased, when it was purchased, where or from whom it was purchased, and how much was spent. ![]() In general, for everything you want to deduct, you should keep the receipt AND the credit card or bank statement. So what exactly do you need to keep? Keep the receipt and the credit card statement Some people keep the receipts, while others keep credit card statements. In the event of an IRS audit, you need to provide documentation for your deductible expenses. ![]()
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