Record Keeping Guide
Keep the right documents, for the right length of time, in a system that is easy to maintain.
What to Keep
Save records that support income, deductions, credits, and cost basis.
- Income and reporting documents (W-2, 1099, K-1)
- Receipts for deductions and credits (charitable, medical, education)
- Investment statements and trade confirmations (1099-B, 5498)
- Property and asset records (purchase, improvements, depreciation)
- Retirement and benefit contribution confirmations
- Prior-year returns, extensions, and payment records
How Long to Keep Records
Retention needs vary by situation. These are common guidelines.
| Record type | Typical retention window |
|---|---|
| Tax returns and supporting documents | At least 3 years; up to 7 in certain cases |
| Investment and property basis records | Keep while owned + at least 3 years after sale |
| Retirement and benefit contribution records | At least 3 years after filing |
| Business and payroll records | Typically 4-7 years (varies by requirement) |
| Estate, trust, and legal documents | Keep indefinitely |
Retention requirements can differ based on your circumstances and regulations. Confirm with a tax professional.
Organization Tips
- Use a simple folder structure by year and category.
- Scan paper records and store PDFs with clear file names.
- Keep original signed documents in a secure location.
- Back up records to encrypted storage or a secure cloud.
- Separate personal and business records to avoid confusion.
Audit Readiness
- Reconcile totals to tax returns and account statements.
- Keep notes for unusual transactions and one-time events.
- Maintain proof of payment for taxes and large deductions.
Quick Checklist
- Prior-year returns and filed extensions
- All income statements (W-2, 1099, K-1)
- Deduction and credit receipts
- Contribution confirmations
- Asset purchase and sale documents
- Business expense logs (if applicable)
Need help setting this up?
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