Do you need a receipt? When we swipe our credit card, we’re often asked if we need a copy of our receipt. Many decline a receipt or leave the copy at the restaurant but wait! The receipt may be useful and worth keeping. Although we live in a digital world where we can track the charges of our expenses and stores can often look up our purchase with our credit card or phone number, receipts still matter. Receipts are still useful when filing your taxes, budgeting, and making returns. It may seem unnecessary to hold onto that slim piece of paper, but by storing and organizing them, you’ll be able to be prepared in case a receipt is required.
Tax Deductions
When it comes to reporting to the IRS, documentation is essential. An easy way to organize your receipts is to have an income tax folder for each year. When you have a receipt that will be tax deductible, write a quick note on it first and place it in the folder. Although tax organizations needs can vary depending on your situation, simply keeping one folder for your tax deductions with their receipts will pay off in the long run.
Budgeting and Reconciling
Although online banking makes it easier to track your charges, it’s still important to keep track of your expenses. By keeping your receipts, you’ll be able to make sense of how much you spend in different categories and verify the charges are correct. While balancing a checkbook may be a thing of the past, it’s still important to use receipts to keep track of what you’ve spent and make sure everything is in order.
Expense Reimbursements
When traveling for work, you may need to be reimbursed for work expenses that were covered with your personal funds. It’s important to keep your receipts for documentation and to ensure proper reimbursement. There are even apps to help you scan and save your receipts, such as neat!
Merchandise Returns or Exchanges
If you think there is a possibility of returning an item, it can be helpful to hold onto the receipt for about a month or as long as the store’s return policy applies. While some stores can look up your purchase, it’s not always guaranteed. By keeping your receipt, you’ll also be able to make sure you get a full refund in your form of payment instead of a deducted price or store credit.
Proof or Purchase for Major Expenses and Warranties
Receipts for any major expense should be kept in a file for the product, such as a car or large kitchen appliance. In case something goes wrong or you need evidence of the purchase, the receipt is a handy way to show the documentation. Receipts for appliances, electronics, or jewelry are also important to hold onto for warranty purposes.