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Here’s a comprehensive guide to help you determine which receipts you should keep for tax season, and how doing so can help you maximize your refund while minimizing the stress that often comes with tax time.
As the year comes to a close, many people start thinking about their taxes—especially as Christmas and the holiday season bring added expenses. One of the best ways to prepare for tax time and maximize your refund is by staying organized throughout the year. Knowing which receipts to save can make all the difference when it’s time to file, allowing you to take full advantage of deductions and credits.
While the holiday season might bring about extra spending, it’s a great time to think about the receipts that could benefit you in the future. Here’s a comprehensive guide to help you determine which receipts you should keep for tax season, and how doing so can help you maximize your refund while minimizing the stress that often comes with tax time.
Medical expenses can add up quickly, and while you may not always think of them as deductible, they could reduce your taxable income if you itemize your deductions. This includes premiums for medical, dental, and vision insurance that aren’t covered by your employer, as well as co-pays, prescriptions, and even medical aids like eyeglasses or hearing aids. If you’ve had any medical treatments over the year, including visits to specialists, chiropractors, or physical therapy sessions, make sure to save those receipts as well. You might also be able to deduct transportation costs to and from medical appointments, which can add up, especially if you’ve traveled far for treatments.
The holiday season often means juggling family time, work, and childcare. If you’ve paid for childcare services to enable you (or your spouse) to work, some of these costs may qualify for a tax credit. This applies to care provided to children under 13 or disabled dependents. Expenses like daycare, after-school programs, or even summer camps can count toward this credit. And if you've used a holiday break as an opportunity to catch up on work, be sure to save receipts for anything related to your dependent's care.
For those filing taxes for years prior to 2018, keep any receipts related to unreimbursed work-related expenses. These include items like uniforms that are specific to your job, work-related tools, and professional dues such as union fees or memberships to professional organizations. While unreimbursed employee expenses are no longer deductible at the federal level after 2018, some states still allow these deductions, so don’t throw them out just yet. You may also be able to deduct business mileage, office supplies, or other expenses related to your job.
For self-employed individuals, saving receipts is even more important. You can deduct various business-related expenses, including materials, supplies, office equipment, and travel. Be sure to track any costs related to running your business, including rent, utilities, and even your home office space if you qualify for a home office deduction. Many entrepreneurs find that their business-related expenses can significantly reduce their taxable income, so it’s essential to keep a detailed record of all your receipts throughout the year.
Christmas shopping can sometimes feel like an overwhelming expense, but did you know that it may help you during tax season? If you live in a state that doesn’t have income tax or made large purchases (like a car or home improvement), you might be able to deduct state and local sales taxes instead of income tax. This can be especially beneficial if your spending during the holiday season included high-ticket items that resulted in a large amount of sales tax. Keep all those receipts, as they could help you claim a deduction and save you money on your tax bill.
Keeping good records year-round is an essential part of minimizing your tax burden. It allows you to track your expenses and make sure you’re taking advantage of all available deductions. As the holiday season often brings increased spending, now is the perfect time to start saving receipts for the next tax season. While the excitement of Christmas gifts and celebrations can make it easy to forget about taxes, it’s important to be proactive so that you don’t miss out on potential savings come April.
While keeping track of receipts is essential, it’s only part of the equation. The tax code can be complex, and knowing which deductions to claim and how to file your return can be overwhelming. At Vincere Tax, we specialize in helping both individuals and businesses navigate the intricacies of tax planning and filing. Whether you're self-employed, have medical or childcare expenses, or need help understanding which receipts qualify for deductions, our team is here to guide you through every step of the process.
As we approach the holiday season, now is the perfect time to start thinking about next year’s tax return. The sooner you begin gathering your receipts, the less stressful tax time will be. Our experts at Vincere Tax can help you organize your paperwork and provide advice on strategies to maximize your refund.
Don’t let the holidays—or the thought of taxes—add unnecessary stress to your life. Let Vincere Tax take care of your tax planning needs so you can focus on enjoying the holiday season. Contact us today to schedule a consultation and ensure you’re fully prepared for tax season. With Vincere Tax by your side, you can rest easy knowing that your taxes are in good hands.
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This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
