What Should You Do with Old Receipts?

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SUMMARY

This discussion focuses on the management of old receipts, particularly in the context of financial and tax obligations. Participants emphasize the importance of keeping receipts for items over a certain value, such as electronics, and for tax purposes, adhering to the IRS requirement of retaining them for five years. Organizing receipts into monthly and yearly folders is recommended for better management. Additionally, there is a growing trend of retaining prescription receipts due to their deductibility.

PREREQUISITES
  • Understanding of IRS regulations regarding receipt retention
  • Basic organizational skills for managing physical documents
  • Knowledge of tax deductions related to medical expenses
  • Familiarity with warranty periods for consumer products
NEXT STEPS
  • Research IRS guidelines on receipt retention for tax purposes
  • Explore methods for organizing physical documents effectively
  • Learn about tax deductions for medical expenses and related receipts
  • Investigate warranty policies for high-value items to determine receipt retention
USEFUL FOR

This discussion is beneficial for individuals managing personal finances, especially those dealing with disability benefits, tax preparation, and anyone looking to optimize their receipt management practices.

ocean09
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Hi everyone,

What do you do w/ your old receipts (purchasing stuffs in stores? Do you throw them away or keep them in a box just in case anything will happen?
 
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I have to keep mine.

I just got accepted financially for disability, so I'm required to keep them now. I have been doing ok for now, but it's not too critical yet because I haven't been accepted medically yet. Still waiting on that.

I plan on getting folders to organize them on a monthly basis, and when the year ends, I'll put them in a yearly folder.

Before this, I just through them out. Sometimes I shouldn't have because I could have returned things. I could have saved atleast $500 in the past 5 years.
 
It depends on what I buy. If its somthing really expensive(computer,TV,ect...), then I will keep the recipt for a little while.But anything else I will just throw them away.
 
Because of the way I do my taxes, I keep them all. Filed by week, month, then by year. I keep them for 5 years, only because the IRS says I half to. I've been doing it for over 20 yrs, so its a habit by now. I do recall when it was a chore.
 
Some of my VAT is claimed back off my petrol and Diesel receipts, otherwise I just keep them for however long the product is under warranty for, and bin them.
 
I tend to only keep receipts for items over a few hundred dollars.

Oh, I have been getting into the habit of keeping prescription receipts, since they're deductible. I used to have a medical plan so that wasn't an issue up until recently.
 

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