IRS Receipt Requirements: How to Substantiate Any Tax Write Off

IRS Receipt requirements are important to know because they will guide you on how to substantiate any tax deduction in 2022.

You're definitely going to want a clear way to substantiate any tax deduction you decide to take and you need to keep up with every little receipt. In fact, many IRS receipt requirements aren't as strict as you might think.

Timestamps
IRS Receipt Requirements Intro (0:00)
#1 Quick Summary of Tax Write-Offs (1:38)
#2 How to Substantiate a Tax Deduction (3:24)
#3 What Tax Receipts Do You Need to Keep? (6:31)
#4 Storing Proper Tax Documentations (9:06)
#5 How Long Must You Keep Records? (10:15)
#6 Tax Receipt & Document Tips (11:38)
#7 Important Note (12:50)

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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

[jonathanwingmusic]

Crystal clear video, just what I was looking for as a freelancer trying to figure out all my business expenses. I thought I had to save out every single receipt to present to my CPA and to the IRS! Now I know, thanks! 🙏

[FinancialFreedomMadeSimple]

Thank you for sharing this information Sean.

[Yaya-cltu]

At the start of this year, I started keeping all of my receipts because I felt like it would make me more cognizant of my spending. I ordered a receipt holder/organizer from Amazon for $10. Each quarter, I plan to enter the expenses via a spreadsheet. So far, my most significant expenses are food and gas.

Love your channel btw-- great content!

[MillionaireMalc]

Excellent video. I appreciate you really breaking it down.

[suemoran]

You guys are amazing! I am a CPA who has an unrelated small business. You do an amazing job of giving accurate information in an entertaining, easy to follow format. I will recommend your videos to other small business owners.

[Andrew.]

10/10 video. Really appreciate you breaking it down!

[JRoseBooks]

Excellent video! Going to watch more of your videos.

[TrimanceWalker]

I keep my receipts using Receipt Hog. Im using this video for learning! Thanks …

[justdeebee]

Thank you!!! Really needed this info!!

[Travelwithchris]

Thanks a lot for the helpful information! Your channel is amazing! I'm so worried about getting audited because I travel full time for YouTube and have so many expenses for flight and hotels it almost sounds unbelievable 😭😭😭

[festusamoye]

This is a great video .Thanks. I just subbed.

[Drew_Warner]

Definitely stressing about my lack of organization around bookkeeping and receipts. Anyone else with me? Cause I’m feeling alone

[goldenthemerciless]

I use rocket money! It's way better than quickbooks (I do my own bookkeeping). It takes a second to set up "rules" like quick books, but after that, it really does make bookkeeping so easy and it also has really helpful things like tracking savings, investments, subscriptions (it's helped me catch double charging subscriptions twice as a business owner), and even tracks upcoming biz bills. you can connect it to your credit cards and bank accounts, too, so when it's P&L time, it's really straightforward. I tried QB but I really hated how difficult and almost purposefully confusing to use

[yaniraroddy]

I’m so happy that I now will only have to save my cash receipts 🥳

[EdgewaterProWash]

I use Xero I’m not the biggest fan, but it’s not bad

[michaelwalker]

Would you recommend documenting all expenses under a single(debit) if you do not have a credit card available....i personally had a platinum cash app card sent to me and all expenses that i believe will be tied to my sole prop are only processed through that. Tips, receipts(take a picture), gas, snacks or a meal during launch time(break from working), cleaning supplies, accomodations for customers/riders, every time i cashout through the apps its tied to that one card or account( i try to limit the cashouts per week as much as is possible so it can remain organized for my adhd brains(this way it is more visibly seen if a bank needs my documentation and aren't confused in the process), im even going to include insurance and maintenance of my vehicle soon also my phone bill(i use 2 phones, both for business). All these are steps im taking to prep myself for filing an LLC before the end of the first quarter of this year. it's already the 3rd month

[elmersantos]

hey, I have a question. How do I go about writing off purchases for equipment and products bought before the business was formed? As well as with a personal debit/credit card instead of business debit/credit card?

[demetriows]

How would an "accountable plan for reimbursements" fit into this? I heard that it was something needed to be able to make certain types of expense claims affecting profits. Thanks!

[empowered_one]

Great video, I have a question? When working for your own business and then having a W2 from doing so, are you allowed to do some write off with that?

[natnatwisdom]

I write my receipt in a ledger, write a title/summary in bold on receipt, take photo of receipt, put receipt in folder. At end of year I type it into excel and compare it to bank statement, then write summary for tax office. I gather receipts from stores, businesses, banks, utilities, etc. I think I'm overdoing this. I had to drop that business and am trying to start a different business with o income for months and extreme startup purchases