Do you really only keep 7 years tax returns?

[karen1972]

I have the 7 years of complete taxes with all supporting evidence , plus I keep certain forms from previous years, Like Roth contribution forms since wasn't sure how one proves contribution vs conversion vs gain without them.

 

[Carol1862]

7 years. Every year after doing our taxes I shred the oldest one.

 

[Vinnygret]

I was on a shredding binge today where I found that apparently I never do any . . . Had the purchase papers from a car I bought in 1995. . . .

Taxes are next. . . Do I really only need 7 years? Do I ditch the 1099s then too? I probably have at least 20 years. . . Somehow they are hardest of the papers to get rid of.

Actually, IRS says you only need to keep 3 years unless you have special circumstances (which they explain on their web site). Now you can really get sweaty palms. I am presently shredding my recently late father's papers.Give your heirs a break if you can. Visit the IRS web site - it is very enlightening.

 

[Gumby]

I don't understand the drive to shred old tax returns. That's why I have an attic. And, really, they don't take up more than a banker's box.

 

[FIREchief]

It doesn't have to be "all or none." I keep the complete file of backup for each return for three years from the due date. At that time, I skinny each file down to the very basics (W2s, 1099s, hard copy of full signed return, DAF contribution acknowledgement, spreadsheet printout showing calculations). The hanging file is deactivated and the entire remainder is placed into a clearly labeled manila envelope with clasp flap. The label on the envelope indicates that it can be disposed of at time of estate closure. All other support is disposed of at that time.

 

[Montecfo]

I don't understand the drive to shred old tax returns. That's why I have an attic. And, really, they don't take up more than a banker's box.

I agree. I guess I could shred my really old ones but they just take up so little space. And having them is a possible benefit for reasons stated in this thread.

Bigger fish to fry.