Preparing for tax season goes beyond filing on time—it also means keeping the right supporting records for itemized deductions. If the IRS questions your 2025 return, proper documentation can make the difference between keeping your deduction or losing it in an audit.
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Why Recordkeeping Matters in 2025
With itemized deductions subject to IRS scrutiny, audit-proofing your tax return begins with careful recordkeeping. Taxpayers must maintain receipts, bank statements, and other proof that deductions claimed are valid and accurately reported.
Essential Records for Itemized Deductions
- Medical Expenses: Keep receipts, mileage logs for medical travel, and Explanation of Benefits (EOBs).
- Charitable Contributions: Save receipts, canceled checks, and written acknowledgments from charities.
- Mortgage Interest & Property Taxes: Store annual Form 1098 and county tax bills.
- State & Local Taxes (SALT): Maintain W-2 forms, estimated tax payment receipts, and tax return copies.
- Investment Interest: Save brokerage statements and 1099 forms.
- Casualty & Theft Losses: Keep insurance claims, police reports, and repair estimates.
IRS Requirements for Proof
The IRS requires contemporaneous documentation for many deductions. For example, donations over $250 must have a written acknowledgment from the charity. For cash donations, bank records or payroll deductions suffice, but handwritten notes without proof will not.
Digital vs. Paper Records
- Scanned copies of receipts are acceptable if clear and legible.
- Electronic bank and credit card statements are valid documentation.
- Organizing by category (medical, charity, taxes) makes audit preparation easier.
Retention Timeline for Records
Generally, taxpayers should keep records for at least three years after filing, but in certain cases, longer:
- 3 years for most individual tax returns.
- 6 years if you omit more than 25% of your income.
- Indefinitely if you never file a return or file fraudulently.
Audit Red Flags for Itemized Deductions
Some deductions increase audit risk in 2025. Maintain solid documentation for:
- Large charitable donations compared to income.
- High medical expenses near the 7.5% AGI threshold.
- Significant SALT claims despite the $10,000 cap.
Checklist: Must-Have Records for 2025
- Receipts, invoices, and canceled checks.
- Bank and credit card statements matching deductions.
- Medical records and prescriptions if tied to deductions.
- Property tax and mortgage documents.
- Charitable acknowledgment letters.
- Logs for mileage or home office expenses.
Key Takeaways
- Proper records can save thousands of dollars during an audit.
- Both paper and digital records are acceptable if legible.
- Organize documents by category for easy reference.
- Follow retention rules to stay compliant and audit-ready.
