January 19th, 2016

TAX TIP OF THE DAY... IRS says NO RECEIPTS REQUIRED for items under $75!!!

As long as you can prove you were OUT OF TOWN overnight on business, the IRS will not require receipts for expenses under $75.  So stop holding up the toll booth line asking for a receipt.  Don't bother swiping your credit card in the cab.  Don't worry about the receipt for peanuts at the train station.  And it's ok to pay cash at the airport diner when you are in a hurry to get onboard your flight.  NO MORE POCKETS FULL OF $4 RECEIPTS!

So what's the catch?  You need to keep a list of the expenses fairly close to the date incurred.  You can't wait until you are audited to come up with this list 2 years afterwards.  On business travel there is plenty of down time.  While waiting for your flight, or in the cab, or at the hotel bar...  use your phone to update a memo of cash expenses for the day.   

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If you need help filing your taxes... www.baboiancpa.com