Tax records must support the expense you claim; a receipt format alone does not make an expense deductible. The often-quoted $75 threshold is a documentary-evidence exception in specific recordkeeping rules, not a blanket exemption for every business expense. A generated receipt does not independently prove a purchase or guarantee IRS acceptance.
This guide covers supporting records, the limits of the $75 rule, electronic copies, retention and what to do when an original is missing.
What Should Your Records Establish?
The IRS's recordkeeping guidance says supporting purchase and expense records should identify the payee, amount, payment evidence, date and what was purchased. A combination of documents may be needed. Your business books and supporting records should agree.
Keep the seller's itemized receipt or invoice together with payment confirmation and any additional business-purpose record needed for the expense. For example, a card statement might show an office-supply store charge, while the itemized invoice explains what the charge covered. Neither the store name nor the payment amount establishes the business use by itself.
- Retain the issuer's complete document, including relevant pages and tax lines.
- Keep order and payment references so records can be matched later.
- Record the business purpose close to the transaction.
- Separate personal purchases from business expenses.
See our itemized receipt guide for examples of useful line-item detail.
The $75 Rule and Its Exceptions
Under IRS Publication 463, chapter 5, documentary evidence is generally required. Exceptions include an expense below $75 other than lodging, transportation for which a receipt is not readily available, and qualifying per-diem arrangements under an employer's accountable plan. These exceptions do not remove the need to substantiate the relevant expense details.
Exactly $75 is not below $75. Also, a lodging expense below $75 does not qualify for the small-expense exception. Separate per-diem rules may apply. Do not generalize these provisions to charitable contributions, every medical deduction, or all business purchases; consult the rules for the expense involved.
For example, when the small-expense exception applies to a $60 travel meal, keep a timely record of the amount, date, place and business purpose even if documentary evidence is not required. For an actual hotel-room expense of the same amount, request the hotel folio.
Are Digital Receipts and Scans Acceptable?
The IRS applies the same basic recordkeeping principles to electronic and paper records. Keep electronic documents complete, readable, retrievable and backed up. The IRS's electronic-record guidance links to Publication 583 for details.
A scan preserves an existing record; creating a new document from memory is a different activity. When scanning a faded receipt, retain the unedited image and supporting transaction records. Do not change amounts, dates or descriptions in the image. Check any other retention obligations before discarding originals.
How Long Should You Keep Tax Receipts?
The IRS generally describes a three-year retention period for ordinary income-tax records, with important exceptions. Its retention guidance includes:
| Situation | IRS guidance |
|---|---|
| Ordinary income-tax records | Generally three years, subject to the listed exceptions |
| A later refund or credit claim | Three years from filing or two years from payment, whichever is later |
| Unreported income exceeding 25% of gross income shown | Six years |
| Worthless-security loss or bad-debt claim | Seven years |
| No return or a fraudulent return | Indefinitely |
| Property records | Through the applicable period after disposal |
The starting date matters, and other obligations may require longer retention. A general “delete everything after seven years” policy can discard records that are still needed.
What If You Lose a Receipt?
- Request a duplicate from the issuer. Search the merchant account, email and payment history to locate the transaction.
- Gather the records that remain. Keep the invoice, order details, card statement and relevant business log together.
- Explain any reconstruction. Record what was reconstructed, when and from which evidence. Do not present a new layout as an original merchant-issued receipt.
- Check the applicable substantiation rules. Ask a qualified tax adviser when the available evidence is incomplete.
Publication 463 explains how incomplete records may require additional evidence and how records lost through circumstances beyond your control can be reconstructed. Its substantiation rules cannot simply be bypassed by estimating expenses. A tax return preparer can help assess the evidence for the particular deduction.
Using a Receipt Template Responsibly
The ReceiptEdit receipt maker formats the details you enter. Sellers can use it to issue accurate records for their own transactions. Buyers can use a clearly identified reconstruction to organize information, while keeping the underlying evidence. The tool does not verify the transaction, approve a deduction or provide an IRS certification.
An invoice requests payment and a receipt records payment; retain the relevant payment evidence as well. Our receipt vs invoice guide explains that practical distinction. A familiar brand layout does not change who issued a document or what it proves.
State Rules and Special Expense Categories
Federal income-tax recordkeeping does not establish every state's sales-tax receipt requirements. For sales-tax questions, use the official authority links on our state tax pages. A reference tax calculation is not a determination that a receipt satisfies a filing or reimbursement requirement.
Vehicle deductions, charitable contributions, medical expenses and employee reimbursements can have additional rules. Use the relevant IRS publication for the category and year rather than assuming that one checklist covers them all.
Frequently Asked Questions
Does ReceiptEdit generate IRS-approved receipts?
No. It provides an editable document layout. Acceptance depends on the actual transaction, applicable rules and supporting evidence.
Can a bank statement support an expense?
It can be part of the supporting record. Keep enough additional information to explain the transaction and business use.
What should I do before deleting old receipts?
Check the retention period for the return, asset and type of record, together with any other obligations. Keep usable backups for records that are still needed.
