What documents do I need to keep for my taxes?

You should maintain a well-organized file (digital or physical) containing proof of your identity, income, and potential deductions. For cryptocurrency specifically, you must keep granular data for every single transaction to accurately calculate capital gains or losses.

1. Personal & Dependent Information

  • Social Security Cards (or ITIN letters) for you, your spouse, and all dependents.

  • Government-issued Photo ID (Driver’s license, state ID, or passport).

  • Bank Account Info: Routing and account numbers for direct deposit of refunds.

  • IP PIN: If the IRS issued you an Identity Protection PIN, you must have this to file.

2. Income Documents (What you earned)

  • W-2 Forms: From all employers you worked for during the tax year.

  • 1099 Forms:

    • 1099-NEC / 1099-MISC: For freelance, contract, or gig work.

    • 1099-INT / 1099-DIV: For interest and dividends from banks/brokerages.

    • 1099-R: For distributions from retirement accounts (IRAs, 401ks) or pensions.

    • 1099-G: For unemployment benefits or state tax refunds.

    • 1099-K: For payments received via third-party networks (like PayPal, Venmo, or Amazon) if you sold goods/services.

3. Cryptocurrency Records (Crucial for Audits)

Because crypto exchanges do not always capture the full picture (especially if you transfer between wallets), you are personally responsible for tracking the "cost basis" of your coins.

  • Transaction Logs: A record of every exchange, including:

    • Date and Time of the transaction.

    • Transaction Value: The Fair Market Value (FMV) in USD at the exact moment of the trade.

    • Fees: Gas fees or exchange trading fees (these verify your cost basis).

    • Transaction Hash/ID: The digital fingerprint of the transfer.

  • Wallet Addresses: Public addresses for all wallets you control (hot or cold storage).

  • Airdrop/Staking/Mining Records: If you earned crypto as income, record the FMV on the day you received it.

4. Deduction & Credit Documents (To lower your tax)

  • Form 1098: Mortgage interest statements.

  • Form 1098-E: Student loan interest statements.

  • Form 1098-T: Tuition statements for college expenses.

  • State & Local Taxes: Records of property taxes or real estate taxes paid.

  • Charitable Donations: Receipts for cash donations and detailed records for non-cash donations (clothes, household items).

  • Medical Receipts: If your medical expenses exceed 7.5% of your adjusted gross income.

  • Business Expenses: If self-employed, keep receipts for software, equipment, home office costs, and mileage logs.