?? Re Documention for Med Expenses
Margaret
I'm wondering about what's sufficient documentation to maintain for Rx
expenses in particular. Are the yearly reports from each pharmacy (say,
Walgreens) sufficient (along with my detail records (& reports) from
Quicken), or do I also need to keep each individual Rx receipt? These
receipts end up being a stack over an inch high, and I'd like to
dispense with them, but I want to make sure I maintain sufficient
records for the IRS.
Thx and Regards,
Margaret
ChrisZ
keep the receipts for 3 years
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Paul Thomas, CPA
"Margaret" <twok...@nospam.gmail.com.invalid> wrote
The pharmacy report may be sufficient, as long as it indicates how much was
paid by you, and how much (if any) was paid by insurance. That report also
would (or should) settle the qualification of the drugs purchased if the
expense was questioned in an audit.
The actual register receipt would be nice, but often times contains other
items that are non-deductible, so even the total charge to your account
(charge card) or the amount of the check written isn't good enough.
--
Paul A. Thomas, CPA
Athens, Georgia
Margaret
Thanks Paul,
The Walgreens report includes the above, but the Caremark (insurance &
mail order pharmacy) only shows what I pay. CMark's individual receipts
do, but they are less bulky than Walgreens. :-) Anyway, I guess to be
safe I'll keep the receipts as well as the pharmacy reports. All my Rxs
go on the same credit card (w/o other purchases), and I can get a
detailed report from the CC company at the end of the year, though my
own records are much better if I do say so myself. :-)
I hear so much different advice on how long to keep tax returns &
associated receipts. Any recommendations? I first paid taxes in 1980,
and my dad (now retired int'l corporate banker) always advised seven
years. So that's what I've been doing. As a result, I have paper
returns, receipts and detailed Quicken reports going back to (&
including 1999). I also have PDFs of returns going back to 1998, and I
keep the tax software's data files (plus the software & updates I used
to prepare it). I also have Quicken archives going back to 1990.
Before that I used the shoebox method! :-) During more recent years,
I've got PDFs of my Quicken reports and all documents received too,
though I don't scan in receipts. If I did, I'd spend my whole life
scanning.... ;-)
As I understand it, the IRS can audit for any years they choose, so
essentially they could audit my 1980 return and check out that ~$3000 I
earned that year. ;-) Is this true? If it is, I guess I should
continue to keep everything for as long as I have room for it! :-)
Thx and Regards,
Margaret
D. Stussy
news:lcWdnfeVwuVJFTPa...@comcast.com...
> ...
> As I understand it, the IRS can audit for any years they choose, so
> essentially they could audit my 1980 return and check out that ~$3000 I
> earned that year. ;-) Is this true? If it is, I guess I should
> continue to keep everything for as long as I have room for it! :-)
No. The basic period of limitations is 3 years from the date of filing (or
due date, whichever is later). There are a few exceptions. Fraud, whether
civil or criminal, has no limitations period but as a matter of
administration, the IRS will look back up to 6 years when they find it.
Some records that pertain to recurring items, plus the purchase of assets
should be held onto longer.
Note that state governments may have a longer period for the state income
tax returns - and different exceptions.
Margaret
Thank you!
Regards,
Margaret