Do you really only keep 7 years tax returns?

[Gumby]

I have a copy of every tax return I ever filed, starting with tax year 1977.

 

[Golden sunsets]

I have a copy of every tax return I ever filed, starting with tax year 1977.

Ditto, back to 1971.

 

[bingybear]

Keeping records is proportional to the actual tax situation. If I had real estate rentals, I’d probably keep my records as long as I had the property. My taxes are very straightforward so I only keep 7 to 10 years in a pdf.

nearly to the dawn of time. I rented my house out when I was on an expat assignment early in my career and still have the house. I'll need those records for when I sell the house. The second issue is my hsa. I fund it and invest it. I have the docs related to this and medical expenses. I can pull hsa reimbursements later.... thus need those records too.

 

[Ready-4-ER-at-14]

I had a huge heavy file cabinet and tons of free space so tax files were not an issue.


When we started downsizing a year or two ahead of actually putting house on market I bought a high speed scanner and started digitizing and or shredding everything except for tax files. I also digitized through photos pictures of me with many personal items I had been keeping only for sentimental reasons.



Good thing I had planned ahead since house on market had offers essentially immediately and closed before we actually closed on a new place.


Finally I digitized everything except last year keeping all supporting paper and even my paper worksheets. Now everything is digitized and shredded about every 2-3 months.


Now I keep this years tax return and documentation until after the return is accepted and processed and money refunded if that is to happen.



Somehow i think I have just become a well organized hoarder. : )

 

[CincyDave]

I keep all mine going back to the 70's. We recently discovered there was a year on DW's SS earnings history showing 0 when she did work. It was the year we were married, so thinking it had to do with not changing her last name in the system or something like that. Anyhow, I was able to come up with her W2 from over 30 years ago. She always gets on me about keeping all the old records, but I'm a packrat by nature I guess.

 

[PatrickA5]

Back to 1976. It's kind of fun to look at old tax returns - which bring back memories (good and bad). I keep a tight ship on everything paper - except tax returns. They take up one quarter of my credenza, so it's no big deal.

I also have the first pay stub from every job I've had going back to Arby's in 1975.

 

[PatrickA5]

One of my first projects after ER was to cull my old tax files. I have PDFs but I like to keep a hard copy of what was actually sent to IRS.

When I cleaned out my late father’s house I found his returns going back to the early 1950s, and that was just the tip of the iceberg of old papers. It was actually quite fun to see just how much the value of money has changed.

My dad had utility bills going back 50 years. Every drawer in his house had paper documents. I finally found his current car title in a drawer mixed in with his electric bills from the 70's.

 

[teejayevans]

Yes, but if they find possible evidence of fraud, they can look back 7 years.

Seems to me that shredding any “evidence” would be advisable.
;-)
Notice to IRS...I’m just kidding.

 

[ncbill]

I keep the returns forever...supporting documentation for only 3 years unless it spans a longer time period...e.g. basis for investments not yet sold, or basis & sales price for investments sold that resulted in carry-forward long-term capital losses.

Anything past 3 years (e.g. underreporting income by 25%+) is basically the IRS accusing you of criminal tax evasion...rare for that to happen considering what they have to do to proceed in those cases.

 

[Gumby]

Seems to me that shredding any “evidence” would be advisable.
;-)
Notice to IRS...I’m just kidding.

One of the benefits of obeying the law is that you don't need to worry about evidence.

 

[Alan]

I just checked, and I keep a paper copy of my returns in a drawer. When a new return is printed and stored, along with any paper copies of 1099s etc, I lift the oldest folder from the bottom of the pile and shred the contents.

I keep 20 years of old returns, so have none from last century. I have pdfs of the returns going back to 2006.

 

[MrsHaloFIRE]

In digits, yes. Hardcopy? Only the year Im working on taxes for.

 

[Montecfo]

Oh yes also need basis records on financial assets in taxable accounts, until sold and those returns passed the audit window.

 

[badatmath]

Hmm well I guess I am in good company of hoarders and will leave that box alone! My shredder thanks you. It is getting tired.

 

[mountainsoft]

I have scanned copies of my tax returns from 1998 to 2007. I started saving PDF versions of my tax returns when we switched to paying taxes online.

As for paper copies, I think I have about ten years worth in my fire safe.

I have never needed an old return, but the digital versions take very little space to store (64MB for 22 years of returns and associated filing forms).

 

[audreyh1]

Seems to me that shredding any “evidence” would be advisable.
;-)
Notice to IRS...I’m just kidding.

Right, you could neglect the keep even the most recent 3 years of returns so that no “possible evidence” of fraud be found. But the IRS has their records of what you submitted.

 

[tulak]

I keep them all as PDFs (with multiple backups). I scan all associated paperwork and file those PDFs with the return, one folder for each year. Every piece of paper goes through the shredder. It's trivial to print those old PDFs if I need to, so why bother keeping the originals?

I use the same system. Nowadays I don’t even get a printed copy from most places. I download all my W2/1098/1099/etc and save my submitted 1040 from TurboTax to a pdf. Saves on a lot of paper and scanning.

After that, it’s not a big deal to keep them indefinitely.

 

[Green Papaya]

I keep hard copies of tax records going back to early 80's. No info booklets. I do not have real estate investment except for the house so my taxes are relatively simple. Filled up two boxes. Will get a good scanner to convert to pdf files and get rid of anything older than 7 years.

 

[pacergal]

Used to keep 10 years, now only 7.

 

[audreyh1]

Scanning the additional paperwork is a real pain for me. Fortunately most of the 1099s etc. are available electronically, but there is always something!

I’m really looking forward to getting rid of years worth of medical receipts when we spend down our HSAs.

 

[Car-Guy]

In my case, 3 years.... Max!

 

[Sunset]

I had a huge heavy file cabinet and tons of free space so tax files were not an issue.


When we started downsizing a year or two ahead of actually putting house on market I bought a high speed scanner and started digitizing and or shredding everything except for tax files. I also digitized through photos pictures of me with many personal items I had been keeping only for sentimental reasons.



Good thing I had planned ahead since house on market had offers essentially immediately and closed before we actually closed on a new place.


Finally I digitized everything except last year keeping all supporting paper and even my paper worksheets. Now everything is digitized and shredded about every 2-3 months.


Now I keep this years tax return and documentation until after the return is accepted and processed and money refunded if that is to happen.



Somehow i think I have just become a well organized hoarder. : )

Do you make house calls

 

[brett]

10 years. Only the backup data, returns on line. Not a big issue. One bankers box. Cannot be bothered to image the hard copy receipts.

 

[grasshopper]

I only keep paper receipts for 3 years, simple 1040-SR and one 1099-B. Medical receipts, property taxes all digital. I have scanned returns from the '80's.

 

[JustCurious]

I have paper returns going back to 1993 and I have PDF copies of electronic returns starting in 2002. I plan to keep the electronic copies forever, they don't take up any physical space. I do very little scanning, the tax returns and almost all of the documents I keep are generated in electronic PDF format.