Bank statements sufficient?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For medical expenses you will need either a statement from your provider with specific dates of service, service provide and the amount you paid, or you will need copies of receipts. If you have insurance coverage, the EOBs may suffice if it shows the amount you owe and you can tie it back to the bank statement for what you paid.

Thank you. I have a lot of receipts to chase down then.

But would OP need to supply those receipts only if the IRS questions them?

Better to have them organized for filing vs have to pull them together for an audit.

Signed,
Been There Done That

[Anonymous]

Anonymous wrote:

Anonymous wrote:For medical expenses you will need either a statement from your provider with specific dates of service, service provide and the amount you paid, or you will need copies of receipts. If you have insurance coverage, the EOBs may suffice if it shows the amount you owe and you can tie it back to the bank statement for what you paid.

Thank you. I have a lot of receipts to chase down then.

Why didn't you file them when you received them?

[Anonymous]

Anonymous wrote:How old are you? Is this your first time doing your taxes?

I'm in my 30's and this is my first time doing itemized deductions so I feel in over my head

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For medical expenses you will need either a statement from your provider with specific dates of service, service provide and the amount you paid, or you will need copies of receipts. If you have insurance coverage, the EOBs may suffice if it shows the amount you owe and you can tie it back to the bank statement for what you paid.

Thank you. I have a lot of receipts to chase down then.

Why didn't you file them when you received them?

I pay a lot of medical bills over the phone and rarely get receipts, even when requested.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How old are you? Is this your first time doing your taxes?

I'm in my 30's and this is my first time doing itemized deductions so I feel in over my head

Oh -- ok -- i get it

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For medical expenses you will need either a statement from your provider with specific dates of service, service provide and the amount you paid, or you will need copies of receipts. If you have insurance coverage, the EOBs may suffice if it shows the amount you owe and you can tie it back to the bank statement for what you paid.

Thank you. I have a lot of receipts to chase down then.

But would OP need to supply those receipts only if the IRS questions them?

Yes, and during an audit, they usually tell you before-hand what in particular in your return they'd like more info on. Medical expenses, if within the range, are unlikely to be questioned.

Biggest way to avoid an audit: don't take any deductions for use of personal car in a business, or use of room at home as an office. Those are ripe for tax fraud and usually indicate bigger issues.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For medical expenses you will need either a statement from your provider with specific dates of service, service provide and the amount you paid, or you will need copies of receipts. If you have insurance coverage, the EOBs may suffice if it shows the amount you owe and you can tie it back to the bank statement for what you paid.

Thank you. I have a lot of receipts to chase down then.

But would OP need to supply those receipts only if the IRS questions them?

Yes, and during an audit, they usually tell you before-hand what in particular in your return they'd like more info on. Medical expenses, if within the range, are unlikely to be questioned.

Biggest way to avoid an audit: don't take any deductions for use of personal car in a business, or use of room at home as an office. Those are ripe for tax fraud and usually indicate bigger issues.

...yes but only if it is clear that you are a w2 and not a 1099. I find it hard to believe that the IRS would question a home office deduction for a 1099er. that's the basic definition of a 1099 for god's sake!

[Anonymous]

Anonymous wrote:

Anonymous wrote:What are you trying to accomplish? If you are trying to deduct business expenses, for example, you would need receipts.

It's mostly for medical payments/bills

Make sure you look at the hurdle for medical expenses before you bother to gather everything. You can only deduct medical expenses if they exceed 10% of your AGI, which is a pretty high hurdle for almost anyone with medical insurance other than senior citizens with low income/high medical expenses. If you were uninsured in 2013 I suppose you might qualify, although hopefully you've got insurance now. Even with a high deductible ($5200 for family) we don't come close to hitting the 10% AGI threshold.

[Anonymous]

I usually pull together a spreadsheet of items, with a column indicating whether or not I have an actual receipt (of course I can pull a cc statement for everything). Then I pull all the receipts I have into a single PDF after I scan them. It doesn't take too long.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What are you trying to accomplish? If you are trying to deduct business expenses, for example, you would need receipts.

It's mostly for medical payments/bills

Make sure you look at the hurdle for medical expenses before you bother to gather everything. You can only deduct medical expenses if they exceed 10% of your AGI, which is a pretty high hurdle for almost anyone with medical insurance other than senior citizens with low income/high medical expenses. If you were uninsured in 2013 I suppose you might qualify, although hopefully you've got insurance now. Even with a high deductible ($5200 for family) we don't come close to hitting the 10% AGI threshold.

Agree. Your AGI may put you out of range for many itemizations. The threshold is pretty low . Figure that out before you put all this work in.

[Anonymous]

Anonymous wrote:I usually pull together a spreadsheet of items, with a column indicating whether or not I have an actual receipt (of course I can pull a cc statement for everything). Then I pull all the receipts I have into a single PDF after I scan them. It doesn't take too long.

I like this idea. I need to get into the habit of scanning throughout the year

[Anonymous]

Bank statements are certainly better than having nothing at all.

The problem is this: Was this payment for a qualifying expense and for a qualified person? Hard to prove that without the actual receipt.

[Anonymous]

I don't think bank statements will cut it. We have some places that don't participate with insurance so we file the claim separately. So our bank statement would show the full payment but not the insurance reimbursement. And of course you can't claim the insurance portion towards your 10% hurdle. OP just curious, what did you do that was over 10% of your AGI?

[Anonymous]

Anonymous wrote:I don't think bank statements will cut it. We have some places that don't participate with insurance so we file the claim separately. So our bank statement would show the full payment but not the insurance reimbursement. And of course you can't claim the insurance portion towards your 10% hurdle. OP just curious, what did you do that was over 10% of your AGI?

My income is not high. I have a high deductible and co-insurance and had a lot of medical issues last year that included exkevsjvd testing and 2 surgeries.

She's the 10% only apply to medical? What about education?

[Anonymous]

*expensive testing