Sage-Tips

What tax documents do I need to keep?

Three Years

• W-2 forms reporting income;
• 1099 forms showing income, capital gains, dividends and interest on investments;
• 1098 forms if you deducted mortgage interest;
• Canceled checks and receipts for charitable contributions;

Is there any reason to keep old tax returns?

1 to keep your tax returns forever is — to protect your Social Security or retirement benefits. Reason No. It’s still on your tax return as a depreciable asset; or you reported the basis when you sold the asset.

How long should you keep tax forms?

three years
In most cases, you should plan on keeping tax returns along with any supporting documents for a period of at least three years following the date you filed or the due date of your tax return, whichever is later.

How long should you keep your tax records in case of an audit?

Three years
Most taxpayers: Three years The statute of limitations for an IRS audit expires after three years. That means most taxpayers should keep their tax records for three years after the date they filed their return, or two years after they paid tax – whichever is later.

What papers to save and what to throw away?

What Documents Can I Throw Away—and When?

• Tax Returns. Old tax documents are probably the number one category of documents we’re asked about.
• Bank Statements.
• Explanation of Benefits (EOB) Forms.
• Medical Bills.
• Utility Bills.
• Paycheck Stubs.
• Credit Card Statements.
• Wills and Estate Planning Documents.

Can I keep my tax records electronically?

You should keep your tax records safe and secure, whether they are stored on paper or kept electronically. The same is true for any financial or health records you store, especially any document bearing Social Security numbers.

How long do you have to keep tax records in Canada?

six years
How long to keep your records. Generally, you must keep all required records and supporting documents for a period of six years from the end of the last tax year they relate to.

What papers should you shred?

Which Documents You Should Shred and When

• Credit card or insurance offers.
• Paid billing statements.
• ATM receipts.
• Sales receipts.
• Paid utility bills.
• Expired warranties.

Do you have to keep hard copies of tax documents?

Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

Can I keep scanned copies of tax returns?

IRS Requirements for Digital Receipts As of 1997, the IRS accepts scanned and digital receipts as valid records for tax purposes. Revenue Procedure 97-22 details the specific requirements; as long as your digital receipts are accurate and can be readily stored, preserved, retrieved and reproduced, you’re in the clear.

How long should you keep copies of your tax returns?

Generally, the IRS recommends keeping copies of tax returns and supporting documents at least three years. Some documents should be kept up to seven years in case a taxpayer needs to file an amended return or if questions arise.

How can I get a copy of a previous year’s tax return?

Doing so can help taxpayers prepare future tax returns or even assist with amending a prior year’s return. If a taxpayer is unable to locate copies of previous year tax returns, they should check with their software provider or tax preparer first. Tax returns are available from IRS for a fee.

What tax returns should you keep?

You should keep every tax return and supporting forms. This includes W-2s, 1099s, expense tracking, mileage logs, records supporting itemized deductions and other documents. Why is Keeping Tax Returns For Three Years Important?

What is the period of limitations for filing a tax return?

The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax. The information below reflects the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed.