How to recport expenses with 1099-misc but no record kept of expenses

[bobsimmons]

My friend is a  barber and works at a salon.  He received a 1099-misc but has failed to keep a record of his work-related expenses (barber equipment and beauty supplies).  What does he need to do in order to enter estimates of his expenses to offset some of his 1099-misc income?

[AmyT · Accepted solution]

It is always advisable to have documentation of any deduction that you claim on your income tax return, in case the IRS decides to take a closer look at it.

If your friend does not have receipts, he may be able to document the purchase in another manner:

• credit card receipt or statement
• copy of the cancelled check
• if purchased online, you may be able to get a copy of the invoice from the vendor

This list is not all-inclusive - just a few ideas to get you started.

Even without a receipt (or alternative means of proving your puchase), you can still claim the expense.  Please be aware, though, that the IRS may disallow it if they request proof and he cannot provide it.

Moving forward, please stress very strongly to your friend the importance of having documentation of all of his expenses and keeping his receipts.