Tax Planning Taxes Done? Find Out Which Tax Records You Should Keep Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Katharina Reekmans, EA Published Feb 5, 2024 - [Updated Mar 20, 2024] 3 min read Sources Before you throw all of your tax documents up in the air after filing to celebrate the occasion, we need to discuss just how long you should keep that info in a safe and secure place. That’s right, you should store your tax information and documentation, including a copy of your tax return, for safekeeping – just in case you need to reference it. But for how long? Table of Contents Three-Year LimitationExtenuating CircumstancesDisposal ProceduresWe've Got You Covered Three-Year Limitation When we talk about tax documents, we’re talking about a copy of the tax return that you filed, along with W-2s, logs for mileage, 1099s, receipts, or any paperwork that will support your tax deductions or credits that you may have claimed. This includes anything that you used to prove the state of your finances on your tax return. As a generic rule across the board, you should keep your tax records for at least 3 years after the date in which you filed – according to the statute of limitations outlined by the IRS. For example, if you filed this year by the April 15, 2024, tax deadline, you should keep your 2023 tax return documentation until the 2026 tax deadline (typically in April of 2027). This time frame was put in place to benefit both you and the IRS. You can benefit from this 3-year timetable because you have a set amount of time to claim any tax refund that is owed to you. On the flip side, the IRS generally will go back three years if they require substantiation for what you claim on your taxes. Extenuating Circumstances There’s always a “but.” When dealing with your retirement accounts, you should plan to keep your tax records for seven years after the funds have been completely withdrawn. You should also hold on to your documentation that long if you claim a bad debt deduction or a loss on securities that you labeled as worthless. Records dealing with property (including stocks and equipment) should be kept until the 3-year statute runs out on the tax year in which you sold the property and claimed it on your tax return. If more than 25% of your income was omitted from your tax return, the IRS has six years to impose any additional tax that is required. If this situation fits your finances, keep those records for at least six years. If you filed a fraudulent tax return, or if you refused/forgot to file a tax return, plan on keeping your financial records forever. In this case, the IRS has no statute of limitations. Disposal Procedures Some people decide to keep all of their financial records, forever. With technology being so convenient, it’s easy to backup all of your financial records on your computer. Be sure you’re using strong security software. It’s a good idea to backup your financial data on a device that’s not connected to the internet 100% of the time. If you choose to throw away your records, shredding is always good advice. You can take it a step further and separate your shredding materials into different wastebaskets. However you decide to save or dispose of your financial records, remember to be safe and secure. This is your financial life we’re talking about here! When you use TurboTax, keep in mind that you can access your prior-year tax return or transfer your prior-year tax return for free. We’ve Got You Covered Don’t worry about knowing these tax rules. No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed. Track your refund Previous Post TurboTax Answers Most Commonly Asked Tax Questions Next Post 4 Errors to Avoid at Tax Time Written by Katharina Reekmans Katharina Reekmans is an Enrolled Agent and a contributor to the TurboTax Blog team. Katharina has years of experience in tax preparation and representation before the IRS. Her passions surround financial literary and tax law interpretation. She has a strong commitment to using all resources and knowledge to best serve the interest of clients. Katharina has worked as a senior tax accountant, operations manager, and controller. Katharina prides herself on unraveling tax laws so that the average person can understand them. More from Katharina Reekmans Sources Before you throw away tax documents after filing, here are the forms you should keep in a safe and secure place. 3 responses to “Taxes Done? Find Out Which Tax Records You Should Keep” How do I get proof the taxes were e-filed and received by the IRS? Hi Phil, Whether you owe taxes or you’re expecting a refund, you can find out your tax return’s status by using one of the following methods: 1. Using the IRS Where’s My Refund tool 2. Viewing your IRS account information 3. Calling the IRS at 1-800-829-1040. Wait times to speak to a representative may be long. Hope this helps. Best, Katharina Reekmans How would I acquire a copy of my 2017 w2 form Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed?
Hi Phil, Whether you owe taxes or you’re expecting a refund, you can find out your tax return’s status by using one of the following methods: 1. Using the IRS Where’s My Refund tool 2. Viewing your IRS account information 3. Calling the IRS at 1-800-829-1040. Wait times to speak to a representative may be long. Hope this helps. Best, Katharina Reekmans