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jesiscool
New Member

I would like to know if my bank and credit card statements are valid proof of expenses I am claiming on my schedule c.

 
4 Replies
GeoffreyG
New Member

I would like to know if my bank and credit card statements are valid proof of expenses I am claiming on my schedule c.

Absolutely bank and credit card statements are acceptable as proof of payment for expenses; just as are actual receipts or invoices from the suppliers and service providers.  This is true as long as your bank or credit card company shows the "payee" by name, instead of just a date and a dollar amount (charge) of the amount paid.  You can think of detailed bank and credit card statements as being very much similar to copies of cancelled checks.  They are a reliable, third party, verification of expenses paid.

Of course, if you have actual invoices or receipts as well, then please keep them too for your records (you can even scan them and save them to a thumb drive or other computer storage device, if you don't like keeping and storing paper documents).

That said, as a CPA, I have personally been through enough tax audits at both the federal and state level to know that bank and credit card statements will certainly be accepted as proof of payment (for expense reporting purposes) on both a Schedule C Self-Employment tax return, as well as all other types of tax returns and forms (e.g., school tuition expenses, business asset purchases, employer-related job expenses for hotels and meals, etc.).

Thank you for asking this important question.

tdown1111
New Member

I would like to know if my bank and credit card statements are valid proof of expenses I am claiming on my schedule c.

Hello,

 

Good advice! If I send the IRS a credit card statement, do I blackout the charges that are not used as expenses? And only show the charges that are necessary?  

 

Or do I only highlight the necessary charges?

 

Thanks!

ToddL99
Expert Alumni

I would like to know if my bank and credit card statements are valid proof of expenses I am claiming on my schedule c.

Why would you want to send the IRS proof of you business expenses?

 

Unless the IRS is asking for proof of business expenses (an audit), you do not need to send them any supporting documentation of those expenses.

 

If they are asking for written proof, then you should "black out" any irrelevant charges on your statements.

tdown1111
New Member

I would like to know if my bank and credit card statements are valid proof of expenses I am claiming on my schedule c.

Hi ToddL99,

 

Thanks for the response!  Yes, it is part of an audit and I want to use my credit card statement as proof of expenses.

 

I assume I should blackout all the charges that I am not using to support my expenses?

 

Thanks again!

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