Yes, but you do not need to build a whole Library of Alexandria with them

Ask any creator about taxes and at least a few will tell you the same thing: “save every single receipt.” The shoebox full of crumpled paper, the scanned PDFs, the pile you swear you will sort out one day. The truth is the rules are more flexible than people think.

What the IRS actually cares about

For any expense you want to deduct, the IRS wants three things:

1. What you bought
2. When you bought it
3. How much you spent

That is it. They are not demanding that you keep a faded Starbucks receipt from three years ago if you can show the same information another way. Bank statements, credit card records, invoices, and even checks can do the job.

The $75 rule you have probably never heard of

There is a little known exception called the $75 rule. If an expense is under $75, you usually do not need a receipt. This applies to things like taxi rides, tolls, or a quick meal while traveling for business.

There are exceptions to the exception. Hotel stays always require a receipt. So do business gifts and anything you considered “listed property” like computers, phones, or vehicles that you use for both business and personal purposes.

So yes, keep your hotel bill and note down who that dinner was with. But if you lost the receipt for a $20 cab ride to a convention center, you are not doomed.

When receipts do matter more

Certain categories come with stricter requirements. Travel, meals, and gifts need more detail:

• The amount
• The time and place
• The business purpose
• Who was involved and how it relates to your work

Vehicle expenses are another big one. If you write off mileage, you need a log showing dates, business purpose, and odometer readings. Gas and maintenance can also be deducted, you you need the records.

What if you do not have the receipt

There is a principle called the Cohan Rule that lets you estimate some expenses if you can prove they happened but lack a receipt. Think of emails about a client trip or calendar entires that line up with charges on your bank statement. The IRS will not take your word alone, but they will consider reasonable estimates backed by other evidence.

Best practices that make life easier

• Keep digital copies of everything,. Snap a photo, and move on. Beluga has a really easy receipt upload feature so you can save and forget.
• Note the business purpose as you go. Future you will not remember why that lunch mattered.
• Separate business and personal spending so you do not have to explain why groceries ended up in your deductions.
• Keep records for at least three years, since that is the standard audit window.

Receipt Required vs. Receipt Not Always Required

Category

Receipt Required

Receipt Not Always Required

General Expenses

Best to keep, but bank/credit card statements can also work

Expenses under $75 (except special categories)

Travel

Lodging (hotel bills), airfare, rental cars

Taxi, ride share, subway, tolls under $75

Meals

Business meals need documentation of amount, time, place, purpose, and who was present

Quick meals under $75 while traveling (still note the purpose)

Gifts

Always required, even small amounts

N/A

Listed Property (computers, phones, vehicles)

Always required, plus logs showing business use

N/A

Vehicle Expenses

Mileage logs, fuel receipts, maintenance records

N/A

Other Purchases

Out-of-pocket cash buys should have receipts if possible

Bank or card statements often enough if <$75

Bottom line

Receipts are still the strongest proof you can have, but the IRS does not requrie paper for every expense. The real rule is to show what, when, and how much. Use bank and credit card records, keep digital backups, and know when exceptions apply.

The goal is not to live in fear of losing a piece of paper. It is to build a system where your expenses are clearly tied to your business. Do that and tax season stops feeling like a scavenger hunt and starts feeling like just another task you already handled.

Keep on Creating!

— The Beluga Team