Short answer
The IRS expects supporting documents that show the payee, the amount paid, proof of payment, the date and a description showing it was a business cost. Keep records until the period of limitations ends — generally 3 years from filing, longer in some cases. Digital records follow the same rules as paper.
Key takeaways
- Supporting documents should identify the payee, amount, proof of payment, date and what was bought.[1]
- Generally keep records for 3 years; 6 years if you under-report income by more than 25%; 7 years for bad-debt or worthless-securities claims.[2]
- For travel, gifts and car expenses, you generally need receipts for lodging and for other expenses of $75 or more.[3]
- Electronic records must follow the same basic recordkeeping principles as paper.[1]
What a business receipt should show
The IRS lists cash-register tapes, credit-card receipts and statements, invoices, account statements and cancelled checks as supporting documents for expenses. Whatever the form, it says the documents should identify the payee, the amount paid, proof of payment and the date incurred, and describe the item or service so it is clear it was a business cost. A combination of documents may be needed.[1]
| Document | Proves | Missing |
|---|---|---|
| Itemized receipt | Payee, date, amount, what was bought | Proof of payment if paid in cash and unsigned |
| Card statement | Payee, date, amount, proof of payment | What was bought |
| Invoice | Payee, what, amount | Proof of payment, unless marked paid |
| Receipt + card statement | Everything | — |
The $75 rule for travel, gifts and car expenses
Publication 463 sets stricter substantiation for travel, gifts and car expenses. You generally need documentary evidence, such as receipts, for lodging regardless of amount and for any other expense of $75 or more. Evidence is ordinarily adequate if it shows the amount, date, place and essential character of the expense; a hotel bill, for example, should show the hotel's name and location, the dates and separate amounts for lodging, meals and calls.[3]
Below $75 (other than lodging) you still need a record — usually a log entry with the amount, date, place and business purpose. Capturing a photo of the receipt anyway costs nothing and removes the argument.
How long to keep receipts
| Situation | Keep records for |
|---|---|
| Most returns | 3 years[2] |
| Claim for credit or refund after filing | 3 years from filing or 2 years from paying the tax, whichever is later[2] |
| Unreported income over 25% of gross income shown | 6 years[2] |
| Loss from worthless securities or bad-debt deduction | 7 years[2] |
| No return filed, or fraudulent return | Indefinitely[2] |
| Employment tax records | At least 4 years[2] |
Records for property and equipment (what you paid, improvements, depreciation) are kept until the limitation period ends for the year you dispose of the asset. Ask your tax preparer if you are unsure.
Are digital receipts acceptable?
Yes, with conditions. The IRS says electronic accounting software and other electronic storage systems should follow the same basic recordkeeping principles as paper, and that hard-copy requirements also apply to electronic records; Publication 583 has more detail.[1] In practice: the image must be legible, complete and retrievable for the whole retention period.
That last point is why export matters. NexaLink Scanner keeps receipts on your phone; export a CSV (free) and, on Pro, the PDF expense report each quarter, and store them with your tax files so a lost phone never means lost records.
A simple Schedule C receipt routine
- Capture every business receipt on the day — the phone reads payee, date, total and tax.
- Choose a category that maps to a Schedule C line (see self-employed expense categories).
- For meals, travel and anything over $75, add a short note with the business purpose.
- Quarterly, when you work out estimated tax, export the quarter's CSV and check totals by category.
- At year end, export the full year and hand it to your preparer with the PDF report — or import the CSV into QuickBooks.
Key facts about NexaLink Scanner
- What it is: NexaLink Scanner is a private receipt and expense organiser for iOS and Android, built for freelancers, sole traders, contractors and small businesses. It is not accounting software and does not file tax returns.
- How it reads receipts: text is read on the phone (on-device OCR) and capture works offline. Merchant, date, total and tax are filled in; any value it is unsure of is flagged, and a low-confidence total cannot be saved until you confirm it.
- Where data lives: receipts are stored on your phone and do not sync to the web. Data leaves only when you export it.
- Free plan: 50 receipts, on-device reading, search, 5 default categories and CSV export. CSV export is free on every plan, always.
- Pro: $4.99 a month or $39.99 a year — unlimited receipts, custom categories, projects and tags, a PDF expense report in the app, tax and multi-currency reports. Image ZIP export and Xero / QuickBooks import files are coming soon.
- Accounting connections (none live yet): Xero — First · V1.1 · QuickBooks Online — Next · V1.2 · FreeAgent — Planned · Sage Accounting — Planned · Zoho Books — Planned · TallyPrime — Import file first. CSV export works with any accounting tool today. Status as of 2026-11-10; see accounting integrations.
Frequently asked questions
Do I need receipts for every business expense?
You need adequate records for every deduction. For travel, gifts and car expenses, receipts are generally required for lodging and for other items of $75 or more; below that, a log with the details is generally acceptable.[3]
How long should a self-employed person keep receipts?
Generally 3 years from filing, longer in specific cases — 6 years for substantial under-reporting, 7 for bad-debt or worthless-securities claims.[2]
Is a bank or card statement enough?
Usually not on its own. It proves payment but rarely shows what was bought. The IRS notes a combination of documents may be needed.[1]
Can I keep receipts only on my phone?
Electronic records are acceptable if they meet the same principles as paper.[1] Keep a backup outside the phone: export CSV and PDF regularly.
Does sales tax matter on my receipts?
The US has no VAT to reclaim. Sales tax you pay on a business purchase is generally part of that expense's cost. NexaLink records the tax line separately so your preparer can see it.
Does NexaLink Scanner file my taxes?
No. It captures, organises and exports receipts. Your tax software or preparer files the return.
Sources
- IRS — What kind of records should I keep — checked on 2026-11-10
- IRS — How long should I keep records? — checked on 2026-11-10
- IRS — Publication 463, Travel, Gift, and Car Expenses — checked on 2026-11-10