Federal retention schedule
| Keep for | Situation |
|---|---|
| 3 years | Most returns and their supporting records (from the later of the filing date or the due date) |
| 6 years | If you left out more than 25% of the income shown on your return |
| 7 years | If you claimed a loss from worthless securities or a bad debt deduction |
| 4 years | Employment tax records, after the tax becomes due or is paid |
| Indefinitely | If a return was never filed or was fraudulent |
| Until the property is sold, plus the period above | Records showing the cost basis of homes, investments, crypto and business assets |
Many people simply keep returns permanently and supporting records for seven years, which covers nearly every situation.
New Jersey and New York
- New Jersey generally has four years to assess additional income tax, one year longer than the IRS, so keep New Jersey records at least that long.
- New York generally has three years, but residency questions can reach back further if returns weren't filed. Keep day-count records if you've moved.
- Both states can adjust your return when the IRS does, so keep state records as long as the federal ones.
What to keep
- Filed returns, W-2s, 1099s (including 1099-DA and 1099-K) and K-1s
- Receipts, invoices and statements supporting deductions and credits
- Closing statements and improvement records for real estate
- Brokerage and crypto transaction histories that support cost basis
- Payroll records, 1099 contractor information and sales tax returns for businesses
Going digital
Scanned and electronic records are generally acceptable if they're legible and complete. Back them up in more than one place, and share them with us through our secure client portal, never by regular email.
Frequently asked questions
How long should I keep my tax returns?
At least three years from filing for most returns, but many people keep the returns themselves permanently, since they're useful for future planning and loans.
How long should a business keep payroll records?
At least four years after the tax is due or paid, longer if your state requires it.
Do I need to keep receipts if I have bank statements?
Bank statements show payment, not what was purchased. Keep receipts or invoices for deductions you claim.
How long should I keep records for my house or investments?
Until you sell the asset, plus the retention period for the return that reports the sale, because they establish your cost basis.