Filing taxes can be a daunting task, especially if you’re a newer taxpayer with little experience preparing a return. Fortunately, there are several steps you can take to make the process easier. One of the most important parts of tax planning is careful recordkeeping. This can help significantly reduce your tax bill; however, to accurately claim all the deductions you qualify for, you must have receipts to show what you paid. Additionally, the IRS requires supporting documentation for deductions in the event of an audit. Here are a few types of receipts you should file away for tax season.

What Receipts Do You Need for Tax Planning Purposes?

1. Medical 

As of 2019, you can deduct medical expenses you paid out of pocket that were more than 10% of your adjusted gross income. Thus, if you’ve had a substantial amount of medical bills in the past year, it’s essential to make sure your receipts are accessible when it comes time to do your taxes. Deductible medical expenses may include health insurance premiums, co-pays for doctor and dentist visits, hospital stays, lab fees, prescription medications, and transportation costs to receive treatment.

2. Childcare 

The child and dependent care credit is designed to help parents who pay for childcare while working or going to school full time. If you paid a babysitter, daycare center, summer camp, after-school program, or anyone else to take care of your children, be sure to store the receipts in a safe place. To qualify, the children must be under 13 years old or a disabled dependent. 

3. Charitable Donations 

With proper documentation, you can also deduct cash and merchandise donations you make to charities. Smaller donations can be supported with a canceled check, while donations that are more than $250 require a written acknowledgment from the organization. For any non-cash donations, you must have a detailed description of the items and their estimated value. It’s best to request a receipt for either kind of donation to keep with your tax planning records.

If you’re unsure which receipts will be useful for minimizing your tax obligations, turn to Bergamo Tax & Financial Solutions for professional advice. Based in Watertown, CT, and also serving Middlebury, Waterbury, and Litchfield, they offer reliable tax planning services year-round to ensure clients are properly prepared when tax season arrives. They stay up-to-date on all the latest tax laws and will help you determine the best strategies for maximizing your deductions and refund. Call (860) 274-1655 to schedule a meeting, or visit them online to learn more about the services they offer.