Supporting documentation
Be sure to keep documentation that supports each entry in your log. You should retain all of the following:
- deposit slips, canceled checks, and invoices
- credit card sales slips and cash register receipts
- daily ledger that lists cash income
- logs for mileage travel to perform self-employment or business activities (see our mileage log sample in the Additional resources section of this module)
- invoices from inventory and asset purchases
- receipts and invoices for payments you made
- purchase orders and receipts from payment of expenses
- any tax form you receive, including Form 1099-MISC for miscellaneous income or Form 1099-NEC for nonemployee compensation
Your records should also include detailed information about each transaction, including date, names, addresses, amounts, time, Social Security number or tax Identification number. Your records should indicate all of the following:
- date and time work or service was performed
- complete address or location where work or service were completed
- name of person or business that paid you
- amount of each payment
- Social Security number of person or tax Identification number of business who paid
You can keep records in either paper or electronic formats. You should be able to compare records from one time period (such as a month, a quarter, or the year) with records from another period.
For tax filing purposes, your records must be made available for inspection on request. You’re generally required to keep your tax records for three years or Form 1099-NEC for nonemployee compensation. You should also retain a copy of your tax return with these records.
