Generally, there are two types of people: those who keep every receipt they get for the hopes of getting high deductibles or returns for the next tax season. Then there are those people who just wave their hands at the cashier when asked if they want the receipt.
Perhaps, you might be somewhere in between? Those who take and shove it directly into their pockets, wallets, and purses. But what exactly should you do with those receipts? Take note that you don’t need to keep every receipt unless it’s tax deductible or something you can refund on in the future.
Therefore you should know how to organize receipts, and which to throw out. Not only will it save you the clutter of storing everything in boxes or your drawers, but you’ll get more organized with your stuff!
Here are the necessary things you need to know how to file receipts!
This type of receipt can immediately be thrown away as soon as you’re done cross-checking them with the items you bought. They don’t have any information about you, so there’s nothing that you need to worry about.
If you have the habit of keeping track of your cash expenses, you might need to save your receipts until you’ve verified the items you had spent on. Once you’re through, you can get rid of it.
There could be times where you need to keep the receipts from restaurants long enough to validate them against your card if you left a tip. You may not know it, but sometimes, the tip can be misread or altered, and you will need proof to dispute it. But if everything turns out okay, you can discard it now.
After putting on the outfit and taking off the tags, you can already get rid of it. Just make sure you have nothing to take back due to size, item, or color changes.
On the other hand, there are some receipts that you may need to collect longer than about a month before your card statement arrives. The receipts can be used as proof for different things, from tax deductions to warranties. It will always be handy to keep a copy and the original.
Donations are tax-deductible, therefore keeping them until the next tax season can give you lower tax dues. Even if it often takes an extra step to get a receipt, it’s always worth it.
Regarding deductions and insurance, keeping any receipts for checkups, medication, and procedures is mandatory.
If you bought products, especially gadgets and appliances with warranties, you’d need to keep the receipt, in case that the time comes for you to claim it. You can keep them together with the items that they came with or you can tape them inside the manual for tracking.
You may want to keep the receipt of items that you bought for a high price. After cross-checking against your card statement, you can always shred it and toss it out.
For most companies, you’ll be needing the receipts if you’ve spent something for reimbursement. It’s wise to make a copy until you get hold of the check or once you’re paid. But it’s more likely that you’ll turn the original receipt over to your employer.
If you own a business, the majority of costs are tax deductible but make sure to keep those receipts until it’s time for auditing, otherwise, they won’t be valid.
Now that you’re aware of how to sort them up, make sure to store the keepers in an organized manner to prevent a cluttered home! But if you need help tidying it up, call in the professionals! Don’t you worry!