Document Retention Tax Tip

February 13th, 2019

The IRS is cracking down on several credits and the Head of Household filing status. If you claim any of these credits or use the Head of Household filing status please retain the following documents:

Head of Household:
If you are divorced or separated: Keep the entire divorce, separate maintenance, or separation agreement. 

If you are married and your spouse did not live with you during the last 6 months of the year: Keep documents showing this, such as: lease agreement, utility bills, or a letter from clergy or social services. 

For your qualifying child: Keep birth certificates, and records showing the child lived with you for more than half the year. Such as: school, medical, daycare, or social services records. A letter on letterhead from the same places showing names and common address and dates.

For cost of keeping up the home: Keep rent receipts, utility bills, grocery receipts, property tax bills, mortgage interest statements, and other household bills.

Earned Income Credit:
Keep everything in the above list AND:
If your qualifying child is at least 19 but under the age of 24: Keep school records showing that the child was a full time student for some part of at least 5 months of the year.

If  your qualifying child is any age and permanently and totally disabled: Keep letter from doctor or social service program verifying the child is permanently and totally disabled.

Child Tax Credit and Additional Child Tax Credit:
For your qualifying child: Keep birth certificates, and records showing the child lived with you for more than half the year. Such as: school, medical, daycare, or social services records. A letter on letterhead from the same places showing names and common address and dates.

If you are not the custodial parent: Keep copies of Form 8332 Release of Claim to Exemption signed by the custodial parent, a copy of which must also be attached to your tax return.

American Opportunity Credit:
Keep Form 1098-T and a copy of the Bursar’s statement from the college or university showing actual amounts paid during the year.

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