How long to keep tax records

how long to keep tax records

Bankrate has answers. Our experts have been helping you master your money for four decades. Our tools, rates and advice help no matter where you are on life’s financial journey. The length of time you should keep a document depends on the action, expense, or event which the document records. Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out. Should you throw away your old tax records? Join Sybil in discussing how long you should keep your records and what could happen if you throw them away too soon. Season 3 Episode 12 Segment 2. How Long to Keep Tax Records: Can You Ever Throw Them Away? Find out how long you should keep tax returns. By Michael Keenan January 30, 2019 Taxes 101. Click to Subscribe. Once you’ve submitted your tax return to the Internal Revenue Service each year, the last thing you probably want to think about is how to store your tax records. How Long to Keep Tax Records: A Checklist For most tax deductions, you need to keep receipts and documents for at least 3 years. Image: Lucas Saugen/Stocksy. Unless you live in a Hollywood Hills mansion, you probably don't have space to store years of tax and insurance paperwork, warranties, and repair receipts related to your home. Consumer Reports' experts tell you how long to keep tax records, and share easy ways to organize your post-tax paper records and computer file clutter. Wondering how long to keep tax records? The IRS recommends storing tax returns and related documents for at least three years and up to seven years. Why should I keep records? Good records will help you monitor the progress of your business, prepare your financial statements, identify sources of income, keep track of deductible expenses, keep track of your basis in property, prepare your tax returns, and support items reported on your tax returns. You must keep records about your business income and costs for longer if you’re self-employed. How long you should keep your records depends on whether you send your tax return before or after. Here are some guidelines about how long to keep tax records. At NerdWallet. That means you should keep your tax records for three years from the date you filed the original return.