How Long Do I Have to Keep My Tax Records?
RECORD RETENTION GUIDE FOR INDIVIDUALS
How long to keep records is a combination of your individual situation and state and federal statutes of limitation. Federal law requires you to maintain copies of your tax returns and supporting documents for three years following the date the return was filed or the due date of the return, whichever is later. Federal tax returns can generally be audited for up to three years after filing and up to six years if the IRS suspects under reported income (by 25% or more), so it’s wise to keep tax records six to seven years after a return is filed. Requirements for records kept electronically are the same as for paper records.
If/When the time finally comes to get rid of tax documents, please be sure to do so carefully. Tax returns contain sensitive personal information that can be used by identity thieves, so take the time to shred those forms thoroughly before parting with them for good.
You can find a detailed retention guide on our website, www.bergamocpa.com/taxretention.php but generally you can follow these recommended retention periods for various documents:
Record Retention Period
Tax returns (basic)…….. .…………………………… 7 years
Tax returns (all others)………………………………. Permanent
W-2s…………………………………………………. 7 years
1099s………………………………………………… 7 years
Cancelled checks & supporting tax deductions…….. 7 years
Charitable contribution documentation……………… 7 years
Credit card statements………………………………. 7 years
Receipts and/or logs pertaining to tax returns……… 7 years
Investment purchase & sales slips……….. Ownership period + 7 yrs
Dividend reinvestment records……….… Ownership period + 7 yrs
Year-end brokerage statements………. Ownership period + 7 years
Mutual fund annual statements………… Ownership period + 7 years
Bank deposit slips…………………………………… 7 years
Bank statements…………………………………..… 7 years
Rental/Investment property purchase documents……. Ownership period + 7 years
Home purchase documents…………………………… Ownership period + 7 yearsi
Home improvement receipts and cancelled checks…. Ownership period +7 yearsii
Home repair receipts and cancelled checks…………. Warranty period for item
Retirement plan annual reports………………………. Permanent
IRA annual reports…………………………………… Permanent
IRA nondeductible contributions Form 8606………... Permanent
Insurance Policies……………………………………. Life policy +3 years iii
Divorce documents…………………………………... Permanent
Loans………………………………………………… Term of loan + 7 years
Estate planning documents………………………….. Permanent
i Keep indefinitely where tax rollovers are involved.
ii Keep indefinitely where tax rollovers are involved.
iii Check with your agent. Liability for prior years can vary