There are many financial documents you will need when preparing or providing information for your taxes–one set of those being your bank statements. Your bank statements are incredibly useful supporting documents to help track various areas of your financial situation. The following is a rundown of ways your bank statements help you and notes to keep in mind.

Firstly, it’s important to note that banks typically keep your statements online for 7 years, but check copies are only kept for 12-18 months; you should take care to annually download these documents.

Bank statements are good for:

• Providing Evidence of Income

• This is especially helpful if you get paid by direct deposit instead of receiving a physical check. Statements serve as proof of income for individuals and businesses.

• Expense Tracking

• For individuals or their businesses, this helps track deductibles like charity contributions, mortgage interest payments, various business expenses, etc. Again, statements provide proof of expenses for individuals and businesses alike.

• Proof of Deductions

• If you claim a deduction on your tax return, bank statements serve as proof to support that claim–like medical expenses, for example.

Conclusion

If you’re worried about being in a situation where you’d need to make an “opening statement”, just show them the ones from your bank.

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