Keeping your tax records organized can save time and stress if the IRS ever requests additional information. While the exact retention period depends on your situation, these general guidelines can help.

General Rule

Keep your tax returns and supporting documents for at least three years after filing. This includes:

• W-2s and 1099s

• Receipts for deductions

• Bank and credit card statements

• Charitable donation records

Keep Records Longer If:

• Six years: If you significantly underreported your income.

• Seven years: If you claimed a bad debt or worthless securities deduction.

• Indefinitely: If you never filed a return, filed a fraudulent return, or need records to establish the cost basis of property or investments.

Business Owners

Business owners should generally keep tax records, payroll records, receipts, and financial statements for at least seven years. Permanent business documents should be kept indefinitely.

Go Digital

Electronic copies of tax records are acceptable as long as they are clear, secure, and easy toaccess. Back up your files regularly to avoid losing important documents.

Keeping tax records for the right amount of time helps protect you during audits, supports deductions, and makes future tax filing easier. If you're unsure whether to keep or discard a document, it's always best to check with your tax professional.