What tax deductions can you deduct without receipts? It’s the question on everyone’s lips when they’re trying to reduce their tax bill for the year. Thankfully, the IRS does allow businesses to claim certain tax deductions without receipts, which can help reduce your business income. In this article, we’ll show you what they are and how to claim them responsibly for ultimate tax savings.
Before you add any of these deductions to your business tax return, speak to your accountant to confirm that they are available to your business.
The TL;DR if You Don’t Have Receipts
- You can still claim certain deductions without paper receipts using alternative documentation or IRS calculations – think vehicle mileage, home office space, and health insurance if you're self-employed.
- Always save your receipts when possible! They're your best defense during an audit and make the whole tax process smoother.
- No detailed receipts? No worries! Bank statements and expense logs can often save the day. Or the standard deduction is always available without needing to track down a single receipt.
Understanding Business Tax Deductions
What is a Business Tax Deduction?
A business tax deduction is any legitimate expenses you can subtract from your company’s taxable income to reduces federal income tax liability.
The IRS lets you deduct costs that are "ordinary and necessary" for running your business—translation: reasonable expenses that help you make money. These can include:
- Home office expenses
- Vehicle expenses
- Charitable contributions
The best part? Every dollar in deductions means less taxable income, which means more money staying in your pocket.
We'll get more into what you can deduct without receipts below, but you'll also want to check out our full list of 50 tax deductions and credits other checklists fail to mention.
Tax Deduction vs. Tax Write-Off
While the terms “tax deduction” and “tax write-off” are often used interchangeably, they have slightly different meanings.
- A tax deduction is a specific expense that can be subtracted from your taxable income.
- A tax write-off is a broader term that refers to any expense that can be deducted from taxable income.
Essentially, all tax deductions are tax write-offs, but not all tax write-offs are tax deductions.
Tax Credit vs. Tax Write-Off
A tax credit differs from a tax write-off in that it directly reduces the amount of tax you owe, rather than reducing your taxable income. Tax credits are typically used to offset specific expenses, such as research and development costs or renewable energy investments.
For example, if you qualify for a $1,000 tax credit, it reduces your tax bill by $1,000. In contrast, a tax write-off reduces your taxable income, which in turn lowers your overall tax liability.
Both tax credits and tax write-offs can provide significant tax savings, but they operate in different ways.
Do You Need Receipts to Claim a Tax Deduction?
Not always, but you do need proof.
While the IRS does not explicitly require paper receipts for every expense, it does require adequate records. That means you’ll need some kind of documentation to support the amount, date, business purpose, and vendor involved in the transaction.
Here’s what that could look like:
- Bank or credit card statements
- Canceled checks or digital payment confirmations
- Invoices or itemized bills
- Written records such as a mileage log or expense journal
- Digital receipts or scanned copies of originals
That said, the IRS is much less lenient with certain types of deductions (like travel, meals, and auto expenses), so strong documentation is key.
8 Tax Deductions Without Receipts You Can Claim
1. Cell Phone Expenses
If you use your personal cell phone for business purposes, you can likely deduct a portion of the plan as a business tax deduction.
To calculate this deduction, multiply the cost of your monthly cell phone plan by the percentage you use for business. For example, say you use your cell phone for business purposes 40% of the time, and the monthly plan costs $100.
$100 (plan cost) x 40% (total business usage) = $40 (your monthly business tax deduction is $40).
Similarly, legal and professional fees for services from accountants, lawyers, and other professionals directly supporting business operations can also be tax-deductible.
2. Charitable Contributions
Charitable contributions serve a dual purpose – benefiting the community and offering tax benefits for businesses. Businesses are allowed to deduct charitable contributions from their taxes. For donations over $250, the IRS requires a written acknowledgment from the charity instead of a physical receipt.
Both LLCs and corporations can utilize this method for deducting charitable contributions on their respective tax forms.
These contributions can also be claimed on your personal income tax return, impacting your overall tax obligations. However, to deduct charitable contributions as an individual, you must itemize your deductions. The standard deduction for 2024 is $14,600 for single filers and $29,200 for married couples filing jointly.
3. Home Office Deductions
If you operate a home-based business, you may be able to deduct a portion of your home office expenses – rent, utilities, insurance, mortgage, real estate taxes, and more – using the home office deduction
Actual receipts aren’t required for the simplified home office deduction method, which lets you claim $5 per square foot of home used for business, up to 300 square feet. This makes the maximum available deduction $1,500.
If you’re using the actual expense method, retain bills or statements, even if scanned or digital.
4. Retirement Plan Contributions
Business owners can contribute to retirement accounts such as a traditional IRA, SEP-IRA, or solo 401(k) to reduce their taxable income. These contributions are reported on Form 5498 and can be deducted without needing to present receipts.
Partnerships can deduct contributions made to retirement plans like a 401(k) directly from income. Such deductions do not require receipts as they are recorded through the retirement plan administration.
Here are the current limits for 2024:
- IRA Contribution Limits – Annual contribution limits increased to $7,000 for 2024, up from $6,500 in 2023. Investopedia+3IRS+3IRS+3
- 401(k) Contribution Limits – For employees participating in 401(k), 403(b), and most 457 plan contribution limits rose to $23,000 in 2024, up from $22,500 in 2023.
5. Self-Employment Taxes
Self-employed filers are responsible for paying their own self employment tax, which includes both Medicare and Social Security taxes. Often referred to as self-employment taxes, you can typically deduct half of these from your income. No receipt required.
6. Self-Employed Health Insurance Premiums
If you're self-employed and you pay for health insurance for yourself, your spouse, or your dependents, you can write 100% of these costs off as tax deductions. If you don't have receipts, you can use a copy of your health insurance premium policy's declarations page. Alternatively, use the payment history found in your insurer's website as proof of payment.
7. Vehicle Expenses
If you use your personal vehicle for business purposes, you can claim the cost of gas, depreciation, and repairs on your tax return. The simplest, receipt-free way to claim these deductions is to use the standard mileage rate to calculate vehicle-related work expenses
In lieu of receipts, you'll need to keep a mileage log that records:
- Dates
- Destinations
- Trip purposes
- Total miles driven for the year
This information substantiates the deduction. For 2024, the IRS standard mileage rate for business use of a vehicle has increased to 67 cents per mile, up from 65.5 cents in 2023. This will increase to 70 cents for the 2025 tax year.
Remember: if you use the vehicle for both business and personal purposes, you can only claim tax deductions for the miles you drive for business-related purposes. That's why it's essential to keep track of how many miles you drove for business-purposes throughout the year.
8. Travel Expenses Under $75
The IRS does not require receipts for travel-related expenses under $75, unless it’s for lodging. This includes taxis, tolls, parking, and business meals. But you still need to record in some fashion: what, when, where, why, and how much.
Advanced Tax Deductions: Credits and Incentives
Beyond the fundamental deductions, a variety of advanced tax deductions, credits, and incentives are available to help reduce the federal income tax bill without the need for itemized deductions. These include the:
- Earned Income Tax Credit: Targeted at low to moderate-income workers, especially those with children, the EITC provides significant tax relief without the need for receipts.
- Child and Dependent Care Credit: Available for taxpayers without presenting receipts to offset the costs of childcare or dependent care when they are working or job hunting.
- Casualty and theft loss deductions (other than those related to federally declared disasters) remain limited. If qualified, you can deduct losses without receipts, as long as these exceed 10% of their adjusted gross income (AGI).
Employee Retention Credit: An Overview
The Employee Retention Credit was a refundable tax credit for eligible businesses that compensates for qualified wages, including specific health insurance costs, during the COVID-19 pandemic.
If your business claimed the ERC in 2021 or 2022, great—but there’s nothing new to claim for 2024. The program has ended, and the IRS is cracking down on improper claims.
Beware of ERC “mills” or aggressive third-party firms promising huge credits in 2024 – they’re likely scams.
If you filed an ERC claim in error, the IRS created a Withdrawal Program to help businesses avoid penalties.
Green Energy Incentives for Businesses
Green energy incentives can provide substantial tax benefits for businesses. The Investment Tax Credit (ITC) reduces federal income tax liability based on a percentage of the cost of a qualifying solar system installed during the tax year.
Solar systems eligible for the 30% ITC or 2.75 ¢/kWh PTC include those starting construction before 2033 or those under 1 megawatt in size. But they comply with labor requirements or start service in 2022 or later.
Eligible expenses for the ITC calculation encompass:
- solar panels
- inverters
- racking
- installation costs
- qualifying energy storage devices
- certain indirect costs
The Production Tax Credit (PTC) provides a tax credit for every kilowatt-hour of electricity generated by solar and other qualifying systems for the first ten years, with an annually inflation-adjusted rate.
Complying with labor requirements by paying prevailing wages and using apprentices can grant projects additional ITC or PTC credits.
Can You Use Bank Statements for Deductions?
Bank statements typically aren't enough to substantiate a tax deduction. They should be accompanied by additional documentation (invoices, bills, mileage logs, etc.) clearly describing the business purpose. The IRS needs to see – name of payee, amount paid, date incurred, and a description of the item or service that proves the expenditure was business-related.
For example, a bank statement will demonstrate that you paid $275 at OfficeWorks. But it won't indicate whether the items you purchased were for personal or business-related purposes.
What Other Tax Return Documentation Can You Use?
When you don't have receipts, try to gather as much supplementary information as you can. Things like:
- Invoices
- Bills
- Account statements
- Purchase and sales invoices
- Contracts
- Transaction histories
- Detailed logs for certain expenses
- Canceled checks
- Bank statements
- Calendars that document business travel and client meetings
- Cell phone bills
- Detailed mileage logs
- Diaries
- Copies of credit card statements
- Copies of airline tickets
Stress-Free Tax Filing: How Hiline Can Help
If you need some help with your taxes this year, chat with a Hiline advisor and see how we can help. With Hiline, you get a dedicated team of financial pros to manage your business's back office – bookkeeping, accounting, tax filing, and year-round strategic financial support.
We can help identify all of the deductions available to your business, minimize your taxable income for the year, and provide the financial expertise you need to make your business grow.
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