How Long Should I Keep My Tax Records?
While the IRS will not tell a taxpayer how long they need to keep their tax records, it’s prudent to keep them anyway. But just what should you keep and for how long? As a general rule of thumb, if you “attempted’ to file your return correctly, then you will want to keep everything for 3 years. However, take a look at the two tables shown below for further details and items only applicable to certain situations.
Supporting Tax Documentation To Keep |
|
|---|---|
| Item | Supporting Record |
| Income | Form(s) W-2 Form(s) 1099 (INT, DIV, Etc.) Bank statements Form(s) K-1 |
| Expenses | Canceled checks or other proof of payment Invoices Receipts |
| Home | Closing statements/HUD-1 Purchase and sales invoices Proof of payment Insurance records |
| Investments | Brokerage statements Mutual fund statements Form(s) 1099 Form(s) 2439 |
Length Of Time One Should Keep Their Tax Documentation |
|
|---|---|
| Situation | Retention Period |
| Owed tax and the subsequent three situations do not apply to you | 3 years |
| Did not report income that is more than 25% of the gross income shown on the return you filed | 6 years |
| Filed a fraudulent return | Indefinite |