If you drive for Uber or DoorDash, clean houses, do construction, or get a 1099 for any kind of work, your receipts are money. Every business expense you can prove lowers the profit you pay self-employment tax and income tax on. The problem is that most people keep receipts in a glove box, a shoebox, or a camera roll full of blurry photos, and then try to sort it all out in April.
Here’s what the IRS actually asks for, how long to keep it, and a simple system that takes about 15 minutes a month.
What a receipt needs to show
The IRS says your supporting documents should identify who you paid, how much, proof that you paid, and the date. They should also describe what you bought, so it’s clear the expense was for your business. Sometimes one document isn’t enough. A card statement shows you paid, while the itemized receipt shows what you bought, so keep both when you can.
Documents that count include register receipts, card receipts and statements, invoices, canceled checks, and account statements.
Can I keep photos instead of paper?
Yes. The IRS allows electronic records, as long as they follow the same rules as paper ones. A clear photo or PDF that shows the vendor, date, amount, and items works. Thermal receipts from gas stations and stores fade within months, so take the photo the same day.
How long to keep them
For most people, the IRS says to keep records for 3 years from when you filed the return. It’s longer in some cases: 6 years if you left out more than 25% of your income, 7 years for bad debt or worthless securities claims, and records for property until 3 years after you sell it. Keeping everything for 7 years is a simple, safe rule.
A 15-minute monthly system
- Snap it right away. Take a photo of every business receipt the same day, before it fades or gets lost.
- Keep one folder per month. Make a folder in your phone or Google Drive called “Receipts 2026” with a subfolder for each month.
- Once a month, turn them into a spreadsheet. Write down the date, vendor, what you bought, the amount, and a category for each receipt.
- Use Schedule C–style categories. Supplies, car and truck expenses, phone and internet, advertising, meals, and so on. This is how your preparer will group them anyway.
- Separate personal purchases. Groceries for your house or clothes you wear every day are usually not business expenses. Mark anything you’re unsure about and ask your preparer.
Skip the typing: Ipiña Recibos
I built a tool that does step 3 for you. Upload photos or PDFs of your receipts and it reads the date, vendor, amount, tax, and suggests a business category. Then download a clean Excel file with a summary by category, ready for your tax preparer. It reads receipts in English and Spanish. Your first 10 receipts are free.
The app doesn’t keep your receipt images, so keep your photos in your monthly folder. Categories are suggestions: review each row before you use it.
Don’t forget the expenses without a receipt
Some of your biggest deductions don’t come with a receipt. If you drive for work, your mileage is often worth more than everything else combined. You need a log with the date, miles, and purpose of each trip. Use my 2026 mileage calculator to see what your miles are worth.
Once you know your expenses, check how much to set aside each quarter with the quarterly tax calculator, so April isn’t a surprise.
The bottom line
A receipt you can’t find is a deduction you can’t take. Take the photo the same day, keep one folder per month, and turn it into a spreadsheet once a month. Your tax preparer will thank you, and you’ll keep more of what you earn.
Sources: IRS, What kind of records should I keep and How long should I keep records. This article is general information, not tax advice for your situation. Need help with your return?
Leave a Reply