When reporting items on your tax return, you must maintain adequate records to verify them. Below is a list of essential records to retain:
- Receipts and Sales Documents: Include those for deductible business expenses, self-employment, farming, rental activities, and the sale of assets.
- Cash Payments: Keep dated and signed receipts for any deductible cash payments.
- Income Statements: Retain Form W-2 for wages and Form 1099 for interest, dividends, rental income, and nonemployee compensation.
- Payroll Records: Maintain copies of W-2 and 1099 forms you’ve issued.
- Pay Statements: Save statements if they show deductible expenses withheld from your paycheck.
- Tax Credit Documentation: Retain receipts and certificates for Oregon tax credits claimed.
- Tax Returns: Keep copies of your tax returns, including federal returns with all schedules, or “as if” returns if you weren’t required to file federally.
- Special Filing Status: Keep “as if” returns prepared for claiming a special filing status.
- Supporting Documents: Retain worksheets, summary statements, calendars, logbooks, journals, and similar records.
- Bank and Financial Records: Keep canceled checks, substitute checks, carbon copies of checks, bank deposit slips, and account statements for both personal and business accounts.
- Alimony Payments: Save copies of canceled checks along with the divorce, separate maintenance, or support decree, or a written separation agreement.
- Property Records: Maintain proof of purchase price, purchase expenses, costs of improvements, and any basis adjustments (e.g., depreciation or deductible casualty losses). For gifted property, keep records of the donor’s adjusted basis, the fair market value at the time of the gift, and any gift tax paid.
- Capital Asset Sales: For capital gains or losses, document when and how the asset was acquired, its use, and details of its sale or disposal. Include cost or basis, gross selling price, and sale expenses.
- Loan and Mortgage Statements: Keep year-end statements showing total interest paid on loans, mortgages, or notes.
- Real Estate and Property Taxes: Retain mortgage statements, canceled checks, and other documents showing real estate and personal property taxes paid.
- Care Provider Payments: If claiming the Oregon Working Family Household and Dependent Care (WFHDC) credit, keep proof of payment to your care provider.
Ensure these records are complete and well-organized to support your tax filings and claims
