My sister Judy and her husband sold their home a few months ago and put most of their belongings in storage, including tax-related papers. She found most of their tax papers because they were filed in a file cabinet drawer. Home-improvement receipts, however, challenged Judy for different reasons. She thought of a couple ideas to avoid future time-consuming searches and deciphering of receipts used for tax preparation or other purposes:
1. Write the home-improvement project on the sales slip such as: drywall to patch a garage wall; tile for a shower; or paint for the kitchen, etc. Also include the item name when not printed on the receipt. File with other tax papers.
2. Make a copy of the annotated receipt right away because print on some types of paper fades over time and become unreadable, then useless. Staple the original receipt to the copy.
Additional tips:
3. Organize your receipts and other tax documents in a notebook with slash pockets (it's easy to see and pull out needed documents). Label each folder with the type of document filed (W-2s, Medical, Mileage, etc). Keep the notebook in a handy location and file items upon receipt.
4. Read the store's Return Policy on sales receipts for clothing, electronics, paint, and sports equipment, etc., then write the Return By Date on the top of the receipt. Return policies vary from store to store and most have exceptions for return of holiday, seasonal, discontinued, and/or clearance merchandise.
5. Affix the sales receipt to the outside of the store bag (staple or use non-damaging tape), and keep the item in the bag until it gets used or returned.
Use the tips noted above and avoid wasting time hunting for receipts and non-readable receipts. Return of unused, unwanted, or unneeded gadgets, garments, or gear will be quick and easy.