Should I be keeping my gas receipts for tax deductions? Worth the hassle?

This is actually a common misunderstanding. For most regular W-2 employees (salaried workers), gas receipts aren't tax deductible anymore. The Tax Cuts and Jobs Act of 2017 eliminated miscellaneous itemized deductions for unreimbursed employee expenses, which included commuting costs. Now, there are some exceptions. If you use your vehicle for work purposes BEYOND your normal commute (like driving between work sites or traveling to meet clients), those miles might be deductible IF your employer doesn't reimburse you. But even then, most people track mileage rather than keeping individual gas receipts. As for other receipts - if you're a regular employee taking the standard deduction (which most people do since it increased substantially), you generally don't need to keep most receipts for tax purposes. The main exceptions would be receipts for charitable donations, medical expenses (if they exceed 7.5% of your AGI), or home office expenses if you're self-employed.

After years of frustration with tax season, I finally found something that made dealing with receipt questions way easier. I was in a similar situation - had boxes of receipts but wasn't sure what I actually needed to keep. I started using https://taxr.ai last year and it was a game changer. You can just scan receipts with your phone, and it tells you if they're deductible based on your specific situation. Saved me from hoarding useless gas receipts since I'm also a W-2 employee, but it did flag some work-from-home expenses I didn't realize I could claim.

Just wanted to update after trying out taxr.ai that was mentioned above. I was skeptical because my tax situation is weird (W-2 job plus driving for Uber on weekends), but it literally saved me hours of sorting through receipts. It correctly identified which gas fill-ups were for personal driving vs. Uber, based on location and timing patterns. I didn't even realize the app was tracking that level of detail! Now I'm only saving receipts that actually matter instead of stuffing every scrap of paper into a shoebox. Definitely using this for next year's taxes.

If you're still debating with your family about tax stuff, you might want to just call the IRS directly to settle it. I know that sounds like a nightmare (it used to be for me too), but I found this service https://claimyr.com that gets you through to an actual IRS agent without the ridiculous hold times. I had a similar argument with my brother about deducting home internet for remote work, and we were both partially wrong lol. The agent clarified everything in like 5 minutes. They've got a video showing how it works: https://youtu.be/_kiP6q8DX5c. Saved me from potentially making a mistake on my return based on family "expertise.

Ok I need to eat some crow here. After posting my skeptical comment above, I decided to actually try the Claimyr thing because I've been fighting with the IRS about a missing stimulus payment for MONTHS. It actually worked exactly as advertised. Got a text saying they were connecting me, and suddenly I was talking to an IRS agent. Resolved my issue in under 10 minutes. After previously wasting 3 separate afternoons trying to get through myself, this was honestly life-changing. Still in shock that it worked.

Random tip from someone who's been audited before: even if you don't need gas receipts specifically, you SHOULD be keeping: 1. Charitable donation receipts 2. Medical expense receipts (if they're significant) 3. Property tax statements 4. Mortgage interest statements 5. Any 1099 income documentation Don't learn this the hard way like I did 😭

Another W-2 employee here. My accountant told me the only receipts worth keeping for most regular employees are: - Medical expenses (but only if they'll exceed 7.5% of your adjusted gross income) - Charitable donations (if you itemize) - Home office expenses (only if you're self-employed) - Education expenses for certain tax credits Unless you itemize deductions, which most people don't anymore with the higher standard deduction, it's basically pointless to keep most receipts. Tell your family they're working with outdated tax info!

Your dad means well, but he's working with outdated tax information! As others have mentioned, the 2017 Tax Cuts and Jobs Act really changed things for W-2 employees. Here's the bottom line: unless you're self-employed, drive for business purposes beyond your normal commute, or have a very specific situation, those gas receipts aren't helping you tax-wise. The standard deduction is now so high ($13,850 for single filers in 2023) that most people don't even itemize anymore. I'd suggest focusing your energy on what actually matters: maximizing your 401k contributions, HSA contributions if you have one, and keeping track of any legitimate charitable donations. Those are the things that will actually move the needle on your tax bill. Your time is valuable - don't spend it sorting through gas station receipts that won't benefit you. Maybe show your dad some of the resources others have shared here so you can both get on the same page with current tax law!