Purpose

• A receipt or invoice establishes proof of a purchase or a donation and is important when claiming tax credits or deductions on a tax return. A taxpayer will generally submit a copy of a receipt or invoice when a purchase or donation exceeds the maximum threshold allowed for a standard deduction or when claiming a large tax credit, such as the new home buyer tax credit or the gift tax exemption.
  
  

Federal and State Tax Credits

• The Internal Revenue Service offers federal tax credits for a range of topics, including charitable contributions, theft losses and travel expenses. Visit the IRS's website for a complete list of federal tax credits. Visit your state's Franchise Tax Board's website for a complete list of state tax credits. Claim and submit your deductions, with applicable receipts, on your state and/or federal tax return. It is not necessary in all cases to submit a receipt for a purchase or donation when filing a tax form. Thus, research federal and state tax credits before filing.
  
  

Filing Requirements

• In most cases, an individual can claim deductions using IRS Form 1040, Schedule A. Attach copies --- not originals --- of receipts for meals and entertainment, travel and transportation, donations --- such as clothing and automobiles --- as well as medical and dental receipts, depending on the type of deduction. The date printed on each receipt must match the filing year in which you qualify for a deduction.
  
  

Common Deductions

• Keep track of gift receipts when filing a gift-tax return. Use Form 709 for any gift to an individual that exceeds the annual gift exclusion, which in 2010 was $13,000.
  
  When applying for the new home buyer tax credit, download and complete Form 5405, "First-Time Homebuyer Credit and Repayment of the Credit." Attach a copy of the settlement statement used to complete the purchase of your home --- this document serves as a receipt for your home.