Keep tax returns and supporting documents for at least three years from the date you filed

The IRS can audit your return up to three years after you file, so that is the minimum time to hold onto everything. If you underreported your income by 25 percent or more, the IRS can go back six years. If you did not file a return at all, there is no time limit — keep records indefinitely for any year you did not file.

The three-year rule covers your actual tax return (the form you filed), all receipts and invoices, bank statements, mortgage interest statements, charitable donation records, medical expense documentation, and anything else you used to calculate what you reported. If the IRS contacts you about a specific item, you will need to show the paper trail that led to that number.

Some documents are worth keeping longer than three years even though the IRS does not require it. Those are covered in the sections below.

Key Takeaways

  • Keep your filed tax return and all supporting documents for at least three years from the filing date, because the IRS can audit returns within that window.
  • If you underreported income by 25 percent or more, keep records for six years instead, since the IRS has a longer audit window in that case.
  • Keep records related to home purchases, home improvements, and investments indefinitely, because you will need them to calculate gain or loss when you sell.
  • Keep mortgage statements and property tax records for as long as you own the home, plus three years after you sell it.
  • Store copies in a second location — a safe deposit box, external hard drive, or cloud storage — in case your home copies are lost to fire or water damage.

Documents to keep for three years minimum

Your three-year window starts from the date you filed, not the tax year itself. If you filed your 2023 return on April 10, 2024, keep everything until April 10, 2027. If you filed an extension and submitted on October 15, 2024, the clock starts then instead.

The documents in this category are the ones the IRS will ask for if they audit that specific year. They include W-2 forms from your employer, 1099 forms for freelance income or investment earnings, receipts for deductible expenses (medical, charitable, business), cancelled checks, credit card statements showing business purchases, mileage logs if you claimed a vehicle deduction, and any worksheets you used to calculate numbers on your return. If you claimed a home office deduction, keep the measurements and photos showing the space you deducted.

Do not throw away the actual return itself — keep a copy of the 1040 and any schedules you attached. The IRS has your copy, but you need yours to answer questions if they contact you, and to file an amended return if you discover an error later.

Documents to keep longer: homes and property

Keep all records related to buying, improving, or selling a home for as long as you own it, plus three years after you sell. This includes the purchase deed, closing statement, receipts for renovations and repairs, property tax statements, and homeowner insurance documents.

You will need these when you eventually sell, because the IRS taxes the profit on a home sale. Your "profit" is the sale price minus what you paid for it plus the cost of improvements you made. If you cannot prove you spent $50,000 on a new roof and foundation work, the IRS will assume you did not, and you will owe tax on a larger gain. Keep receipts for anything that added permanent value to the house — a new roof, new windows, a deck, a bathroom renovation. Do not keep receipts for maintenance and repairs that just kept the house in working order, like painting or fixing a leaky faucet, because those are not deductible.

After you sell the home, keep the closing documents and sale records for three more years in case the IRS questions the gain calculation.

Documents to keep indefinitely: investments and retirement accounts

Keep records of every purchase and sale of stocks, bonds, mutual funds, and other investments for as long as you own them, and indefinitely after you sell. You need the original purchase price and date to calculate whether you made a gain or loss when you sell, and the IRS can audit that calculation at any time.

For retirement accounts like IRAs and 401(k)s, keep statements showing your contributions and the year you made them. If you made non-deductible contributions to a traditional IRA, you will need proof of that for the rest of your life, because it affects how much of your withdrawal is taxable when you retire. Keep the annual statements your account provider sends, or read and save them yourself if the provider deletes old statements from their website.

If you inherit an investment or retirement account, keep the valuation statement from the date of death indefinitely. That "stepped-up basis" is what the IRS uses to calculate your gain if you later sell, so losing that document costs you money in taxes.

Documents to keep for six years: if you underreported income

If you left income off your return — whether by accident or not — and that missing income was more than 25 percent of the income you did report, the IRS has six years to audit you instead of three. For example, if you reported $40,000 in income but actually earned $60,000, the $20,000 you missed is 50 percent of what you reported, so the six-year rule applies.

Keep all documents related to that year for the full six years. This includes bank statements, invoices, receipts, and anything showing where the income came from. If the IRS contacts you about that return, you will need to show the complete picture of your earnings that year.

How to organize and store your records

The IRS does not care how you store your records — paper, digital, or both. What matters is that you can find them and prove what they say if you are asked. A straightforward system is to create a folder for each tax year and put everything related to that return inside: the return itself, W-2s, 1099s, receipts, and any worksheets.

For documents you are keeping longer than three years — home records, investment statements, retirement account statements — create separate folders by category. A "Home" folder holds the deed, closing statement, and all improvement receipts. An "Investments" folder holds purchase and sale confirmations. This makes it easier to find what you need when you sell a home or investment.

Store a second copy in a different location. Scan important documents and save them to a cloud storage service like Google Drive or Dropbox, or keep a backup on an external hard drive in a safe deposit box. If your home is damaged by fire or flood, you will still have copies.

What to do with documents after the retention period ends

Once you have passed the retention important date for a document, you can shred it or delete it. For sensitive documents like tax returns, W-2s, and bank statements, shred paper copies rather than throwing them in the trash. If you have digital copies, delete them from your computer and empty the trash.

Before you throw away anything, double-check the retention period. If you are unsure whether a document falls into the three-year category or the longer-term category, keep it. The cost of storing a few extra papers is much lower than the cost of not having a document the IRS asks for.

Frequently Asked Questions

Do I need to keep receipts if I took the standard deduction?

No. If you took the standard deduction instead of itemizing, you do not need receipts for charitable donations, medical expenses, or other itemized deductions. You still need to keep W-2s, 1099s, and any other documents that show income you reported on your return.

What if I filed an amended return?

Keep the amended return and all supporting documents for three years from the date you filed the amendment, not the original return date. The IRS audit window restarts when you file an amended return.

Can I throw away documents if I have digital copies?

Yes, once you have scanned and verified the digital copy, you can shred the paper. Make sure the digital copy is clear and readable, and that you have a backup stored in a second location in case your computer fails.

How long do I keep records if the IRS is already auditing me?

Keep all records related to the audit until the audit is closed and you receive a final letter from the IRS. After that, follow the normal three-year rule. If the IRS finds an issue and assesses additional tax, keep those records for three more years from the date of the assessment.

What about records for a business I used to own?

Keep business records for at least three years after you close the business, because the IRS can still audit those years. If you sold the business, keep records related to the sale indefinitely, since you may need them to calculate gain or loss if the IRS questions the sale price.