What to keep and the one-year problem!
It could have happened that you heard of some people only keeping their tax records from one year to the other. Not only is this not advisable in most situations, but it could end up being quite irresponsible.
It may seem that you will not need some of the papers you have received and are cluttering your cabinets, and you do not need to hold onto all of them. Generally speaking, you should be keeping the W-2 1099 forms from your employer (especially if you just retired) and other ones like 1099-B and 1099-INT from banks, investment firms, or brokerages. If you happen to have lost your job or you receive unemployment benefits, you should also keep the 1099-G form.
Other records should be kept indefinitely, especially if you have sold or bought a home, with additional papers if you have sold a rental home.
However, keeping tax records only for one year is not the way to go. The IRS suggests you keep them for at least three years.
17 Responses
I print out of my Taxes as filed. I typically use TurboTax and while they are saved in a TurboTax format, they should also be saved as a pdf which make them much easier to read/refer to. Each version of Turbotax seems to be unique, so it you wanted to read your taxes from 5 years ago, you would need to have that year version of TT installed making a pdf easier to review. Then I put the software used to do my taxes with a CD of my taxes return in the manilla envelope, mark the year on the outside and put the envelope in the box. I can usually get at least 2 envelope’s in each box. I also write the years of the taxes inside on the box with a magic marker.
I do my taxes with turbo, But I thought they save them for you in case you need them ! How do you get software so you can print and put on a cd ?
Thank you for the info👍
You buy the CD program at a store instead of doing it online…
I however … will never ever again use TurboTax. Twice now it has caused me issues with the IRS. The last one costing me 2years before they would process my taxes.
Very interesting
After 10 years of keeping old tax records, I throw out the old records, and keep the new ones for ten years.
Be sure to shred the old records & not just throw them out, as they contain your Social Security numbers & other info that thieves would love to have — but you probably know that anyways.
Love all information, having a Tax information PowerPoint Tea presentation for Seniors.
Where is the information you loved? I am unable to find any specific information about what to keep and for how long.
Actually not enough information here to know what to keep and how long? What are the details to know how long one should keep tax returns and which ones?
You did not leave a more definite timeline? You just said what some people do. that was NO HELP.
How long do I have to keep the Medicare and other health insurance bills/ payments?
Did no answer the question !!!!!!!!!!!!!!!!!
we were told 4 years..anything before that shredd them…we saved all of them took us days to shredd them all except the last 4 years everything else got shredded..
Working for CPA firms for decades, it was the Company’s policy to store client’s tax returns and backup paperwork (on site) for 7 years unless you’ve been audited by either the Feds or the State. If audited, we stored their returns and back up paperwork (on site) forever
wasted my time. no information, just hearsay.
How long do you keep estate records from being and executor?
Hello. I have heard numerous different words on this very topic. As a rule of thumb,
may I suggest Seven years. However may I suggest that you ask a lawyer to be sure.
Your circumstance may vary. A good piece of advise always check it out. You see, to
be truthful, it’s better to be safe and free. Don’t you agree???