Instructions For Form Dtf-215 - Earned Income Tax Credit
ADVERTISEMENT
1
2Earned Income Tax Credit
Recordkeeping Suggestions for Self-employed Persons
If you’re a self-employed person who has applied for the Earned Income Tax Credit (EITC) (also known as the Earned
Income Credit or EIC), it’s important that you maintain good records.
The Tax Department may ask you to produce records that prove the amount of income and expenses claimed on your
income tax return.
•
The department will use that information to confirm that you’re entitled to the credit.
•
If you don’t keep records, or if your records don’t prove what you claimed, you won’t get your money.
If you’re required to pay any other New York State taxes, such as sales tax, you’ll also have to keep records that support
the amounts you claim on those returns.
For these reasons, it’s important that you keep good records. These suggestions will help you do that.
How to Keep Good Records
As a general rule, you should keep records of your transactions - payments, purchases, etc. - at the time they happen.
Don’t wait until the Tax Department asks for your records. If you try to describe the details of your business months - or
even years - later, your recollection may not be reliable. The Tax Department is less likely to accept records created long
after the fact.
Maintain a daily log
It’s a good idea to keep daily records of all your business transactions. Be sure to:
•
provide detailed information about each transaction
•
update your records every time you make a purchase, pay an expense, make a sale, or get paid
You can keep a log book or keep records on your computer. See the back for examples of a daily log.
Keep receipts and other documents
Be sure to keep documentation that supports each entry in your log. Examples of supporting documentation include:
•
copies of checks or money orders that you received as payments, or used to pay expenses
•
receipts and invoices for payments you made
•
credit card statements and receipts
Use a bank account
Having a bank account can help establish your income, particularly if you receive payments by check. Copies of deposit
slips, cashed checks, and bank statements can support your claims.
Keep records for three years
The Tax Department may ask for your records as long as three years after you file your return.
Are you self-employed?
You’re considered self-employed if you:
•
are paid directly by customers or clients; and
•
you don’t get a regular paycheck from one or more employers
Examples of self-employed persons include: landscapers, contractors,
builders, painters, plumbers, electricians, babysitters and housecleaners.
DTF-215 (5/12)
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial