Paying & records

Recordkeeping that survives an audit

Last verified: 2 min read Rule card + research brief
Printable checklists
How long to keep tax recordsThree folders. Generally 3 years from filing. 6 years if income was underreported by more than 25%. 7 years for bad-debt or worthless-securities claims. Receipts are required for all lodging and any other expense of $75 or more.3yearsGenerally, from filing6yearsIncome underreported > 25%7yearsBad-debt / worthless securitiesReceipts required for all lodging and any other expense of $75 or more (Pub 463 ch. 5)
How long to keep tax records

The rule (settled)

  • You must prove expenses. "You can't deduct amounts that you approximate or estimate."
  • Record expenses at or near the time. A weekly log counts as timely.
  • Receipts are required for all lodging and for any other expense of $75 or more. Below $75, a log entry with the amount, date, place, and business purpose is enough (Pub 463 ch. 5).
  • How long to keep records:
    • Generally 3 years from filing.
    • 6 years if income was underreported by more than 25%.
    • 7 years for bad-debt or worthless-securities claims (Pub 583).

Travel-nurse checklist

  • Home lease or mortgage statements, plus utilities during assignments
  • Rent paid by bank transfer, not cash. If renting from family, a written lease at fair rent.
  • Driver's license, voter registration, and vehicle registration at your tax-home address
  • Visits-home evidence: fuel receipts, boarding passes
  • Each contract and every extension (with the date agreed), plus the stipend breakdown
  • W-2s (check box 12 code L and code TT), 1099s, and your own 1099 income ledger

Proof of tax home (travel contracts)

  • Lease or mortgage statements for your main home, kept during assignments
  • Utility, internet, and renter's/homeowner's insurance bills in your name at that address
  • Federal returns, bank, and professional license address = tax home
  • PRN or other work in the home area between contracts (pay stubs)
  • Agency per diem policy showing it's an accountable plan, plus your W-2 box 12 code L

1099 / Schedule C

  • Separate bank account and card for the 1099 business
  • Receipts or invoices: licenses, CEUs, certifications, insurance, software, equipment
  • Phone/internet business-use calculation
  • 1099-NEC/1099-K forms, plus your own income ledger (1099s may not arrive for payments under $2,000)
  • Estimated-payment confirmations (IRS Direct Pay / Online Account)

Common mistakes

  • Keeping no proof (lease, utility bills, trips home)You carry the burden of proofSource: Pub 463 ch. 5

Watch: Mileage records that hold up

Narrated explainer · 44 seconds · spoken narration with on-screen captions

Transcript
  1. What to log for business miles, and which rate applies.
  2. 1099 business miles count. W-2 miles don't. Commuting from home to a regular workplace never does.
  3. Record date, destination, purpose, and miles. A weekly log counts as timely. 2026 rates: 72.5 cents, then 76 cents from July 1.
  4. You can't deduct estimates. Keep receipts for lodging and anything $75 or more, generally for 3 years from filing.
  5. Research, not tax advice. Confirm with a CPA or EA before filing.

Sources

Research, not tax advice. Confirm with a CPA or EA before filing.