Record Retention Guide
How long to keep your tax records — and which ones to keep. Good records make your return faster to prepare and much easier to defend if the IRS ever has a question.
How long to keep tax records
Keep the records that support each item on your return until the period of limitations for that return runs out — the window in which you can amend the return to claim a refund, or the IRS can assess additional tax. The periods below start after the return is filed; returns filed early are treated as filed on the due date.
| If you… | Keep records for |
|---|---|
| You owe additional tax, and none of the situations below apply | 3 years |
| You don’t report income you should have, and it’s more than 25% of the gross income shown on your return | 6 years |
| You file a fraudulent return | No limit |
| You don’t file a return | No limit |
| You file a claim for credit or refund after filing your return | The later of 3 years, or 2 years after the tax was paid |
| You file a claim for a loss from worthless securities or a bad-debt deduction | 7 years |
Property. Keep records for property until the period of limitations expires for the year you sell or otherwise dispose of it. You need them to figure your basis and your gain or loss. If you received property in a nontaxable exchange, keep the records for both the old and the new property.
Before you throw anything away, check whether you need it for other reasons — insurers and lenders often require records longer than the IRS does. And keep Copy C of each Form W-2 until you start receiving Social Security benefits, in case there’s ever a question about your earnings record.
Why keep records?
- Identify sources of income — and separate business from personal, and taxable from nontaxable income.
- Keep track of expenses you can deduct, so you don’t forget them at tax time.
- Track the basis of property — what you paid, plus improvements — so you can figure gain or loss when you sell.
- Prepare your return quickly and accurately.
- Support what you report. If the IRS examines your return, records let you explain each item with minimum effort — without them, you may owe additional tax and penalties.
Basic records everyone should keep
| For items concerning your… | Keep |
|---|---|
| Income | Forms W-2 and 1099, bank statements, brokerage statements, Schedules K-1 |
| Expenses | Sales slips, invoices, receipts, canceled checks or other proof of payment, written acknowledgments from charities |
| Home | Closing statements, purchase and sales invoices, proof of payment, insurance records, receipts for improvements |
| Investments | Brokerage and mutual fund statements, Forms 1099 and 2439 |
Proof of payment
Proof of payment shows you paid an amount — but on its own it doesn’t prove the expense is deductible, so keep the underlying documents too. If you pay in cash, get a dated, signed receipt showing the amount and the reason for the payment. Your account statement or year-end pay stub can also serve as proof.
| If you paid by… | The record must show |
|---|---|
| Cash | Amount, payee’s name, transaction date |
| Check | Check number, amount, payee’s name, date the check was posted by the bank |
| Debit or credit card | Amount charged, payee’s name, transaction date |
| Electronic funds transfer | Amount transferred, payee’s name, date the transfer was posted |
| Payroll deduction | Amount, payee code, transaction date |
Specific records
Some items need records in addition to the basics above:
- Alimony
- Keep your written separation agreement or divorce decree. If you pay alimony, you’ll also need your former spouse’s Social Security number.
- Business use of your home
- Records showing the part of your home used for business and the expenses related to that use.
- Casualty and theft losses
- Proof of the type of casualty or theft and when it occurred, that the loss was a direct result of it, and that you owned the property.
- Child and dependent care
- The name, address and taxpayer identification number of every care provider (Form W-10 can help you collect this).
- Charitable contributions
- Bank records or written acknowledgments for cash gifts, and receipts and descriptions for non-cash donations. See IRS Publication 526.
- Dependents
- Records that support claiming your spouse, qualifying children and qualifying relatives.
- Education expenses
- Transcripts or course descriptions showing enrollment, plus receipts and canceled checks for tuition, books and supplies.
- Energy credits
- Purchase invoices, the manufacturer’s certification statement and proof of payment for qualifying home energy improvements.
- Gambling winnings and losses
- A diary showing the date and type of activity, the name and location of the establishment, who was with you, and the amount won or lost.
- HSAs and MSAs
- For each medical expense paid from the account: who you paid, the amount and the date.
- IRAs
- Forms 5498, 1099-R and 8606 for every year, until all distributions from your IRAs are complete.
- Medical and dental expenses
- Receipts, plus a log of mileage, parking, tolls and fares for travel to medical care.
- Mortgage interest
- Form 1098 and your mortgage statements and loan documents.
- Pensions and annuities
- The worksheet used to figure the taxable part of each payment, until you’ve recovered your full contribution.
- Taxes paid
- Forms W-2 and 1099-R showing state withholding, records of estimated payments, state returns, Form 1099-G, and property-tax statements.
- Tips
- A daily record of tips received (Form 4070A works well).
Based on IRS guidance, including How long should I keep records? General information only — ask us about your situation.
Have a question about your situation? Call (832) 638-5790 or send us a message.