If you’re in the market for an easier way to navigate tax season, Shoeboxed might be a good option to consider. 

Shoeboxed is a receipt scanning service and scanner app—with many different methods for extracting receipt data to prepare for tax season. 

Chosen as Hubspot’s #1 choice for tax season prep and the best receipt tracking app for emailed receipts by Forbes in 2023, Shoeboxed also has 4.4/5 stars on Capterra and G2 Crowd and a review score of 4.5/5 on Techradar Pro. 

Outsource receipt scanning and manual data entry with the Magic Envelope method 

Shoeboxed’s standout feature is—without a doubt—the Magic Envelope experience, where you mail-in receipts to be scanned with a postage-paid (free!) envelope, and their team exports the expense data into your Shoeboxed dashboard. 

Here’s a breakdown of the process:

 1. Stuff receipts into a pre-paid (within the US) Magic Envelope and send them to our processing facility. 

2. Shoeboxed scans receipts, extracts and verifies receipt data, and uploads receipts to your account.

 3. You get notified when receipts are processed and viewable in your Shoeboxed account.

 4. Shoeboxed returns or shreds the mailed-in documents based on your preference.

 Watch the video below more on the Magic Envelope method. If you’ve struggled with figuring out your deductibles during tax season, the Magic Envelope method will be a huge time-saver, as each receipt is automatically sorted into 1 of 15 common tax categories. Fill in the category totals into your tax return and you’re done!

Customer service is also top-notch, with Crozdesk awarding Shoeboxed the Quality Choice Award and the Trusted Vendor Award.

 Here’s a quick rundown of the pros, cons, and pricing for Shoeboxed: 

Pros 

• Mail-in scanning service
• OCR scanning
• Human data verification of OCR scans
• Receipt scans that satisfy the criteria for a tax audit
• Quick totaling of categories
• Expense management for business expenses
• Unlimited users on your account
• Digital image archive
• Document management system
• Unlimited cloud storage of scanned paper documents, digital documents, digital receipts, smart receipts, paper receipts, etc.
• Customizable receipt category tags and rules
• Export receipt data to well-known accounting software
• Track mileage for free for iOS users and Android users
• Store and organize business cards
• iOS and Android mobile app
• A setting to automatically convert currencies
• 24/7 monitoring of entry points at our processing facility for physical receipts & documents
• Digital documents and data are protected by Secure Socket Layer (SSL) encryption, the same level of protection used to safeguard your bank account
• 20% discount when billed annually

Cons

• Mobile app plans are only available for in-app purchase. Plans that include the Magic Envelope must be purchased via the website.
• Does not include a budgeting feature.

Pricing

• The Startup plan: $18/mo—Ideal for freelancers and individuals. Includes the Magic Envelope for sending in physical receipts. 600 digital documents per year + 300 physical documents per year. 1 prepaid magic envelope per month. Unlimited file storage and unlimited users. IOS App included.
• The Professional plan: $36/mo—Ideal for professionals and small businesses. Includes the Magic Envelope for sending in physical receipts. 1,800 digital documents per year + 1800 physical documents per year. Unlimited prepaid magic envelopes, unlimited document returns, unlimited file storage, and unlimited users. IOS App included. Quickbooks Online integration.
• The Business plan: $54/mo—Ideal for businesses experiencing high volume. Includes the Magic Envelope for sending in physical receipts. 3,600 digital documents per year. 3600 physical documents per year. Unlimited prepaid magic envelopes, unlimited document returns, unlimited file storage, and unlimited users. IOS App included. Quickbooks Online integration.

Click here to give yourself a leg up this coming tax season.

Frequently asked questions

Can I try Shoeboxed for free? 

Shoeboxed’s plans are available to try for free for 30 days. During this free trial period, users can upload receipts to test how Shoeboxed extracts information and verifies that data with their data-processing team. If you sign up for a monthly plan, cancel any time during the month, and your credit card will not be charged. If you sign up for an annual plan, Shoeboxed will provide a full refund if the plan is canceled anytime during your first 30 days.

Is my information secure with Shoeboxed?

Shoeboxed takes both your physical documents and scanned documents into consideration when it comes to security. All incoming paperwork is kept safe in our facility in Durham, NC with 24/7 surveillance and entry control. Digital files and data are additionally protected by SSL encryption, which is the same utilized by banks to protect accounts.

Does the IRS accept receipt scans for tax deductions?

Receipt scans are 100% legitimate and approved by the IRS. In fact, the IRS has accepted scanned and digitized receipts as valid tax records for tax deductible purposes since 1997.

Can you scan normal documents?

Shoeboxed will scan any type of document you send in. To prepare a single-page document for our document scanner, remove staples and attached sticky notes. To prepare a multi-page document for our document scanner, use a paper clip to attach them together, and our receipt scanner team will scan them into your user account as one document. Read more about multipage documents here.

What is the cost of using Shoeboxed?

Shoeboxed offers various plans to suit different users’ needs. Magic Envelope plans start from $18 per month. And digital-only plans start from $4.99 per month.