Hi, I’m Bette Hochberger, CPA, CGMA. Tax season can be a stressful time for many, but it doesn’t have to be! One common concern taxpayers face is how to prove their deductions. While keeping track of receipts is ideal, life happens, and sometimes those little bits of paper go missing. The good news is that there are several tax deductions you can claim without receipts, making it easier to maximize your tax savings. So, for today’s quickie, we’ll explore what deductions you can take without the hassle of hunting down every single receipt.

Standard Deduction: The Easy Way Out

First and foremost, many taxpayers opt for the standard deduction. The IRS allows you to take a flat deduction based on your filing status, which simplifies the process significantly. For the 2023 tax year, the standard deduction amounts are $13,850 for single filers, $27,700 for married couples filing jointly, and $20,800 for heads of household. Since you don’t need any receipts or documentation to claim this deduction, it’s a popular choice for those who prefer simplicity over itemizing.

Charitable Contributions: A Little Generosity Goes a Long Way

Did you know that you can claim deductions for charitable contributions even if you don’t have receipts for every donation? If you’ve made cash donations to qualified organizations, you can deduct up to $300 for single filers or $600 for married couples filing jointly without receipts. Just make sure you keep a record of your contributions, like bank statements or canceled checks, to support your claims.

Business Expenses: The 50% Rule

If you’re self-employed or a freelancer, there are numerous business expenses you can claim without receipts. For example, the IRS allows you to deduct a portion of your home office expenses, such as utilities and internet costs, based on the percentage of your home used for business. Although keeping receipts is ideal, if you can’t find them, you can use reasonable estimates based on your records. Just make sure your calculations are sound and defensible if the IRS ever questions them.

Mileage: Documenting Your Travel

For those who drive for work, the IRS allows you to claim mileage without receipts, as long as you maintain a log of your business-related trips. For 2023, the standard mileage deduction is 65.5 cents per mile. You don’t need receipts for gas or maintenance; just keep a record of the miles driven for business purposes. Apps are available to help track your mileage, making it easier than ever to stay organized.

Medical Expenses: Keep It Under 7.5%

Medical expenses can be a significant deduction, and you don’t necessarily need receipts for every hospital visit. You can claim medical expenses totaling more than 7.5% of your adjusted gross income (AGI). While it’s best to keep records for larger expenses, you can estimate certain costs, like mileage for trips to the doctor. Just ensure you have some sort of documentation, such as appointment confirmations or bank statements.

Education Expenses: Lifelong Learning Counts

If you’ve taken courses to improve your job skills or advance your career, you might qualify for education tax deductions. While it’s best to keep records of tuition payments, you can deduct up to $4,000 for qualified education expenses even without formal receipts. Keep track of your enrollment and payment confirmations as supporting documents.

The Bottom Line: Stay Organized!

While claiming deductions without receipts is possible, organization is key. Maintain a record of your estimates and calculations in case the IRS comes knocking. Utilize spreadsheets or tax software to keep track of your deductions throughout the year, and you’ll be well-equipped for tax season.

While it’s always best to keep receipts for tax deductions, there are options available if you find yourself without them. From the standard deduction to charitable contributions and business expenses, you can still make the most of your tax return. So, relax and enjoy tax season—it’s not all doom and gloom! With a little knowledge and organization, you can navigate this annual event with confidence.

I’ll see you all next time!