What documentation do I need for tax deductions?

When considering tax deductions, it is essential to maintain accurate and organized documentation to support your claims. The Texas Department of Revenue recommends collecting and retaining relevant records that detail your income, expenses, and any other factors that may impact your tax situation. For individual taxpayers, some of the commonly required documentation includes itemized receipts for deductible expenses, such as medical bills, charitable contributions, and home office expenses. It is also advisable to keep records of any mortgage interest statements, property tax payments, and documentation related to educational expenses if applicable. For self-employed individuals or those who own a business, it is vital to maintain comprehensive records that encompass all business-related expenses, including invoices, bank statements, and receipts for equipment purchases. Additionally, taxpayers should keep documentation related to any income received, such as W-2 forms from employers, 1099 forms for freelance work, and records of any investment earnings. The Texas Department of Revenue suggests that individuals retain this documentation for at least three to five years after filing their tax returns, as audits may occur during that time frame. Ultimately, taxpayers should ensure they have sufficient records to support every deduction they claim, as inadequate documentation can lead to missed deductions or issues if questioned by tax authorities. Individuals looking for further guidance on record keeping and specific deduction qualifications may want to reach out to tax professionals or visit the Texas Department of Revenue's official website for more detailed information.