What Tax Records to Keep and for How Long
disposing of old ones when appropriate—not only provides you with greater confidence now when you
prepare your tax return, but it also provides you with documentation you may need down the road.
Lucky number six. One of the most common questions I'm asked is, how long should I keep my tax
returns? Although you can get away with keeping them only three years, I recommend you keep all
federal and state income tax returns and supporting documents for a full six years.
return is ever lost or misplaced, having a receipt showing the date the return was submitted will save
you from penalties.
File it, but don't forget it. Some events produce documentation that should be kept permanently:
settlement records from all of your home purchases and sales, investment purchases, divorce
agreements, etc.
your records to the attic, remember that regularly filing "updates"—home improvement receipts, records
that show a return of capital on your investments, estate and gift tax returns under which you received
property, etc.—will help to compute your gain/loss when you sell.
contributions you have made to an IRA or Roth IRA. Contact us if you'd like to discuss this further.
Please note the information above is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the receipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of the information provided below should not be acted upon without specific professional guidance. Please call us if you have any questions.
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