Year-End Expense Review Checklist Before You File Taxes

Quick Answer

Tie your personal budget into your tax prep by reviewing every major household expense, capturing receipts, and scroll­ing mileage or giving logs before Form 1040 season opens. ShopiStats keeps receipts, tags spending categories, and surfaces missing entries so you can double-check totals without guessing. Treat mileage or fuel rough models strictly as budgeting approximations (gallons×mpg), not IRS substantiation, and consult a tax pro before relying on any deduction.

Who This Is For

People juggling everyday household spending—rent, groceries, health care, childcare—and trying to finish the year with a clean, accurate financial picture. Household wage earners, gig workers, small business owners, and anyone who wants to keep budgeting at the center while making tax filing less frantic. If you’re logging charitable giving, DIY repairs, or business mileage, this checklist gives you a last-pass routine so tax season doesn’t collide with forgotten receipts.

Why This Matters for Budgeting and Tax Season

Budgeting should never be an afterthought to taxes. When you regularly capture receipts, track meter-to-meter mileage, and reconcile categories, you are really doing two jobs at once: keeping an honest spending plan and collecting the documentation that may be needed if you itemize or deduct. IRS guidance reminds taxpayers that solid records satisfy both goals—well-organized files mean you know where your money went and can justify it later if needed. Poor documentation can lead to denied deductions and, worse, accuracy-related penalties equal to 20% of any underpayment tied to negligence or understatement plus interest. (eitc.irs.gov) Keeping budgeting first ensures habits that make tax prep a byproduct, not a panic.

Step-by-Step

1. Collect receipts before they disappear. Pull every digital and paper receipt for groceries, home maintenance, health expenses, charitable gifts, education tuition, subscription services, and business purchases. Sort them by date and category in ShopiStats so nothing falls through the cracks.

1. Match receipts to bank/credit activity. Cross-check your receipt list against statements. If a charge has no receipt, note the vendor, date, and purpose immediately. The IRS says you must “prove the amount, time, place, business purpose, and business relationship” when claiming travel, gift, or transportation expenses—so contemporaneous documentation matters. (eitc.irs.gov)

1. Tag recurring, deductible-worthy spending. Flag expenses that are deductible (medical, charitable, education, home office) and label anything you might need to revisit. This keeps budgeting reflective of the dollar flows and highlights possibles for itemizing.

1. Track mileage with precision. For business, medical, moving, or charitable miles, maintain a dated log with odometer readings, trip purpose, and total miles. The IRS standard mileage rate for 2026 is 72.5 cents per mile for business use and 20.5 cents per mile for medical/moving (charitable remains 14 cents per mile). (irs.gov) Use ShopiStats to note trips in real time, even if you later export totals for your preparer.

1. Use fuel or gallons×mpg calculations only for budgeting. Estimating miles driven by multiplying gallons purchased by average mpg gives a helpful spending estimate, but Publication 463 explicitly warns that you can’t deduct approximated amounts without documentation. (eitc.irs.gov) Treat these estimates as future-year budgeting guides, not substantiation for deductions.

1. Reconcile reimbursements and accountable plans. If your employer reimburses travel or business costs, match ShopiStats’ export to the reimbursement request. Keep employer-issued logs because the IRS expects the same level of evidence whether you deduct or get reimbursed.

1. Synthesize totals into the year-end summary. Once receipts and mileage logs are tidy, compile totals—household spending by category, deductible items, and business miles. This is the sheet you or your preparer will reference and the same data that keeps your budget realistic.

1. Proof your entries. Look for anomalies: large single purchases, gaps in mileage, or double-logged receipts. Fix them before filing. Document any adjustments you make—write a few sentences in ShopiStats notes so you remember why the total changed.

What to Track (Checklist)

• [ ] Grocery, pharmacy, and household staples by vendor/date
• [ ] Utility, insurance, mortgage/rent, and childcare bills with proof of payment
• [ ] Health care expenses (including prescriptions) with explanation
• [ ] Charitable donations and volunteer mileage details
• [ ] Education, tutoring, or business training costs
• [ ] Home office supplies and furniture (note exclusive-use eligibility)
• [ ] Vehicle mileage logs tied to specific trips (business, medical, moving, charitable)
• [ ] Out-of-pocket business expenses not reimbursed
• [ ] Subscription/library/membership fees grouped by category
• [ ] Emergency or one-off spending that could affect next year’s budget
• [ ] Fuel purchases with gallons and mpg notes for budgeting, labeled as estimates only

Common Mistakes to Avoid

• Missing receipts or relying on reconstructed logs. The IRS wants contemporaneous evidence for each expense; late reconstructions often fail substantiation tests. (eitc.irs.gov)
• Treating estimated mileage (gallons×mpg) as proof. Those rough calculations are fine for budgeting but not for deductions.
• Ignoring document organization until after December 31. You can’t retroactively build the log the IRS expects after the fact.
• Assuming all deductions are safe without a reasonable basis. Doing so can trigger the 20% accuracy-related penalty for negligence or understatement, plus interest. (irs.gov)
• Forgetting to note who benefited from shared expenses (e.g., charitable rides or coworking costs). Details matter for proof.

FAQ

Q: Do I have to keep every receipt I pull? A: Keep any receipt related to deductibles, reimbursements, or large household purchases, especially if the IRS might question it. Digital copies are acceptable if legible.

Q: Can I deduct fuel expenses without mileage? A: Only if you claim actual expenses method; that requires receipts for gas, maintenance, insurance, depreciation, etc. Otherwise the standard mileage rate (with log) is the simpler method.

Q: What about tipping or delivery fees? A: Track them like any other receipt. For business meals you can deduct 50% of the total, but you still need proof of date, place, and business reason.

Q: Do I need a tax professional to review my mileage? A: Not required, but checking with a tax professional ensures your use of mileage rates, depreciation limits, or deductible categories follows the latest IRS expectations.

Q: Are digital receipts valid? A: Yes, as long as they show the vendor, date, amount, and what was purchased.

How ShopiStats Helps

Design ShopiStats to be your budgeting-first companion:

• Capture receipts from email, photo, or import and automatically tag them to spending categories.
• Highlight deductible-friendly expenses (medical, charitable, work-related) so you can cross-check them before summary season.
• Build mileage logs by snapping trips or logging on the go, with totals that mirror the IRS standard mileage rate when you choose to export.
• Create custom notes (e.g., “conference travel,” “volunteer drop-off”) that double as your narrative for preparers.
• Export clean reports for your accountant or tax software. ShopiStats tracks, organizes, and reminds—ShopiStats does not prepare or file taxes, but it keeps your supporting records ready for whoever does.

Sources

• IRS Publication 463 (Travel, Gift, and Car Expenses) — recordkeeping expectations and reminder that you can’t deduct “approximated or estimated” amounts; context for documenting deductions. (eitc.irs.gov)
• IRS Notice 2026-10 (Internal Revenue Bulletin 2026-04) — standard mileage rates for business, medical/moving, and charitable driving for the 2026 filing cycle. (irs.gov)
• IRS Accuracy-Related Penalty page (Payments/Accuracy-related penalty) — outlines the 20% penalty for negligence or substantial understatement and why accurate documentation matters. (irs.gov)

Disclaimer

This article is for budgeting guidance only. ShopiStats does not provide tax advice or file returns. Verify any tax decision with a qualified tax professional before you file.