Record Keeping for Tax filing

What type of records do I need to keep?

Keep detailed records of your income, expenses, and other information you report on your tax return. A good set of records can help you save money when you do your taxes and will be your trusty ally in case you are audited.

There are several types of records that you should keep. Most experts believe it's wise to keep most types of records for at least seven years, and some you should keep indefinitely.

Keep records of all your current year income and deductible expenses. These are the records that an auditor will ask for if the Tax Administration of Jamaica (TAJ) selects you for an audit.
Here's a list of the kinds of tax records and receipts to keep that relate to your current year income and deductions:

• Income (wages, interest/dividends, etc.)
• Exemptions (cost of support)
• Medical expenses
• Taxes
• Interest
• Charitable contributions
• Child care
• Business expenses
• Professional and union dues
• Uniforms and job supplies
• Education, if it is deductible for income taxes
• Automobile, if you use your automobile for deductible activities, such as business or charity
• Travel, if you travel for business and are able to deduct the costs on your tax return

While you're storing your current year's income and expense records, be sure to keep your bank account and loan records too, even though you don't report them on your tax return. If the TAJ believes you've underreported your taxable income because your lifestyle appears to be more comfortable than your taxable income would allow, having these loan and bank records may be just the thing to save you