What Are the Important Tax Records That Should Be Kept Safe?

Paying taxes is an easy thing to do and most tax payers are prompt in doing that to avoid any issues, but when it comes to the deductions that can be shown, most people are at a loss.

Many people have plenty of deductions that help with the taxes. Other people create deductions to be able to reduce the tax. However you go about the deductions, the most important factor remains keeping everything safe, all the receipts and supporting documents, in case you are asked to show proof to the IRS. There are several tax records that need to be kept as support for the deductions.

Mortgage interest payments – The best part about having a mortgage on the home is that you have a paper showing the amount that you have been paying every year. Having this paper is not enough; this should be kept very safely for years.

Dependent support – If you have shown that someone is a dependent, then you will have to prove that you provide support for that dependent and that the support is more than 50%. People who are married do not have issues, but it’s the divorced people that the IRS tries to catch. It is important to keep all the records that are involved in providing this support.

Home repair receipts – These receipts should be kept safe, although you will not have to show these receipt each year. In case someone asks for the receipts, you should be in a position to show them.

Medical expenses – Receipts related to health should be kept if you are showing deduction related to health care.

There are many other receipts that need to be kept, but by and large you should get a fair idea of what you should be keeping safely by reading the above. You must ensure these and other important records be kept, to fall back on, in case of an inquiry.