What to Keep After Filing Taxes

You want to hold on to your tax return and supporting documentation for at least three years. In a few specific situations, some documents will need to be kept even longer.

Three years

You typically want to keep your tax returns and related financial documents for at least three years.
For an individual filer, those supporting documents back up any income, deduction, or tax credit claimed on your return and may include:

• W-2 income forms
• Charitable donation receipts
• 1099 forms

Six years

Tax filers will need to store some documents even longer.
For example, if you underreport your income, and the unreported amount is more than 25 percent of the gross income on your return, the IRS recommends keeping those background records for six years.

Seven years

You want to keep records for seven years if you claim a loss on worthless securities or a bad debt deduction, according to the IRS.

Even longer (maybe forever)

Some financial documents related to your taxes should be kept for years, and maybe even forever.
Examples include:

• Documents related to the purchase or sale of a home or a stock
• Records of major, value-adding home improvements

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Why Keep Records?

There are several reasons why you should hold on to important tax documents:

• Audit protection: You may be asked to produce these papers if you are audited.
• Proof of income: Old tax returns can be required if you apply for a mortgage or another major loan.
• FAFSA applications: If you have a child headed to college, tax records (including your tax return and W-2s) may be useful when filing FAFSA, which asks for income information from two years prior to enrollment.
• Learning from past returns: Previous records can help you avoid repeating mistakes or jog your memory on how you handled a tricky tax situation.
• Amending returns: Having documents on hand makes it easier to amend a tax return if needed.