Tax Tips…
Income and Expense Records You Should Keep in Addition to Your Income Tax Return

 

 

INCOME

RECORDS

Wages, salaries

Form
W-2

Interest income

1099-INT, 1099-OID or Substitute 1099, such as broker statement or year-end account summary

Dividend income

1099-DIV or Substitute 1099 such as broker statement or year-end account summary

State tax refunds

Form 1099-G, state income tax return

Self-employment income

Sales slips, invoices, receipts, sales tax reports, business books and records, 1099-MISC

Capital gains and losses

1099-B or Substitute 1099, such as broker statement or year-end account summary showing proceeds from sales of securities or other capital assets. Records must also show your cost or other basis and the expense of the sale. Your records must show when and how an asset was acquired (including property received as a gift or inheritance), how the asset was used, and when and how it was disposed of. To support the basis of securities, you should keep old account statements, buy/sell execution records, stock dividend and stock split information, and dividend reinvestment records

IRA distributions

1099-R, year-end account summary, Form 8606

Pension and annuities

1099-R, records of contributions

Rents

Checkbook, receipts and canceled checks, and other books and records, 1099-MISC

Partnerships, S corporations

Schedule K-1, record of unused passive activity losses

Estates, trusts

Schedule K-1, copies of last will and testament including codicils, Form 56-Notice Concerning Fiduciary Relationship,
Form 1310-Statement of Person Claiming Refund due to a Deceased Taxpayer, including death certificate or letters of office, Form 4810-Request
for Prompt Assessment Under IRC Section 6501(d), Tax worksheets showing pre-and post-death income allocation, including copies of all 1099's received for the year of death, copies of prior three years Form 1040, and copies of all prior year gift tax returns.

Social security benefits

Form SSA-1099

Royalties

1099-MISC

Unemployment compensation

1099-G

Alimony

Divorce settlement papers

Miscellaneous Income

1099-MISC and other records of amounts received