How Long Should You Keep Tax Records

How Long Should You Keep Tax Records

Learn how long you should keep tax records with this comprehensive guide. After filing your tax return, it can be confusing to know what to do with all the receipts, forms, and other documents. Keeping them organized and knowing how long to hold onto them is key. For instance, pay stubs and monthly brokerage statements should be kept for only a year. However, you should hold onto documents supporting income, deductions, and credits claimed on your tax return for three years. Self-employed individuals should keep 1099s, receipts, and other business expense records for six years. Records related to bad debts or worthless securities should be kept for seven years. Foreign tax records and investment property documents should be kept for ten years. Keep in mind that these are general guidelines, and some situations may require you to keep records for longer periods.