What Records and Documents Do I Need to Keep—and for How Long?

A Practical Guide to Personal and Tax Record Retention

Managing financial and personal documents can feel overwhelming, especially when you’re unsure how long to keep each type of record. Many people either save too much—cluttering their homes with years of outdated paperwork—or too little, increasing the risk of being unprepared during audits, disputes, or major life events.
This guide explains which records you should keep, which tax documents matter most, and how long to retain them, based on common best practices and IRS recommendations.

Why Record Retention Matters

Keeping the right documents helps you:

• Prepare accurate tax returns

• Respond to IRS or state audits

• Dispute billing or insurance errors

• Track warranties, loans, and property ownership

• Protect legal and financial interests

Proper record management also helps reduce identity theft risks and makes it easier for you—or your family—to navigate financial matters if something unexpected happens.

1. What Tax Documents Should I Save?

When it comes to taxes, the rule of thumb is: If it supports the income, deductions, credits, or other items on your tax return, keep it. Here are the main categories.

A. Income Documents

These verify the money you earned during the year:

• W-2 forms from employers

• 1099 forms (1099-NEC, 1099-MISC, 1099-INT, 1099-DIV, 1099-K, etc.)

• K-1 forms from partnerships or S-corps

• Bank and brokerage statements

• Business income documentation (invoices, receipts, sales logs) for self-employed individuals

B. Deduction and Credit Documentation

These support tax benefits you claim:

• Receipts for deductible expenses (medical, charitable, business, etc.)

• Mortgage interest statements (Form 1098)

• Property tax receipts

• Education statements (1098-T, tuition bills)

• Childcare expense records

• Energy-efficiency receipts for credits

• Business expense receipts if self-employed

C. Investment and Property Records

These help calculate gains, losses, and depreciation:

• Purchase and sale records for investments

• Cost basis documents for stocks, real estate, and cryptocurrencies

• Closing documents for real estate (HUD-1, closing disclosure, loan docs)

• Depreciation schedules for rental or business assets

D. Retirement Account Documents

Keep records related to:

• Contributions (especially non-deductible IRA contributions, which require Form 8606)

• Rollovers and distributions (1099-R)

• Beneficiary designations

E. Business Tax Documents

If you operate a business, save:

• Financial statements

• Payroll records

• Expense logs

• Mileage logs

• Receipts, invoices, contracts

2. How Many Years Should I Keep Tax Records?

The IRS has general and special rules for how long you should keep different documents.
Here is a clear breakdown:

A. Standard IRS Rule: Keep Tax Records for at Least 3 Years

The IRS typically has three years from the date you filed a return to audit it. This is the minimum retention period for most documents supporting:

• Income

• Deductions

• Credits

• Refund claims

Most people should keep their tax records for a minimum of 3 years.

B. Keep Records for 6 Years if You Omitted More Than 25% of Income

If you underreported your income by more than 25%, the IRS can audit you up to six years.
To be safe, many tax professionals recommend keeping all documents for six years, especially if:

• You’re self-employed

• You receive income reported on 1099 forms

• You hold investments

• You deal with cryptocurrency transactions

C. Keep Employment Tax Records for 4 Years

If you employ others (household workers, business employees), keep payroll tax records for four years.

D. Keep Records for 7 Years if You Claimed a Loss from Securities or Bad Debt

For bad debts or securities losses, the IRS recommends seven years of documentation.

E. Keep Property Records Until the Property Is Sold—Plus 3 to 6 Years

Real estate, vehicles, investments, and business equipment fall under this rule.
You need to keep:

• Purchase documents

• Improvement receipts

• Depreciation schedules

• Refinancing records

Keep them for as long as you own the asset, then add at least 3–6 years after you file the return reporting the sale.

F. Keep Records Indefinitely if:

• You did not file a tax return

• You filed a fraudulent return

• You want proof of non-deductible IRA contributions

Some financial records are important throughout your life.

3. How Long Should I Keep Personal (Non-Tax) Documents?

Below is a practical retention schedule for everyday documents.

A. Keep Permanently

These documents should never be thrown away:

• Birth, death, and marriage certificates

• Social Security cards

• Passports (even expired)

• Adoption papers

• Citizenship/naturalization documents

• Military discharge papers (DD214)

• Estate planning documents (wills, trusts, power of attorney)

• Medical and vaccination records

• Property deeds, titles, and surveys

• Loan payoff statements

B. Keep While Active (or Useful)

These documents can be discarded after they expire or are replaced:

• Insurance policies (keep until renewed or terminated)

• Warranties (keep until expiration)

• Loan agreements (keep until paid, then retain payoff letter indefinitely)

• Vehicle titles (keep while you own the vehicle)

• Home improvement receipts (keep for life of property)

• Ownership documents for jewelry, art, or collectibles

C. Keep for 1 Year

These documents generally become irrelevant after a year:

• Monthly bills (unless needed for taxes)

• Bank statements (unless used for taxes)

• Credit card statements (unless needed to dispute charges or support tax deductions)

Exception:
If any statement is used to claim a deduction, keep it with your tax records.

D. Keep for 30–90 Days

Short-term documents that can be discarded once reviewed:

• ATM receipts

• Deposit slips

• Sales receipts for minor purchases

After reconciling with your bank or credit card statement, these can be shredded.

4. Practical Retention Summary

Here’s an easy reference list:

5. Should I Keep Paper Copies or Go Digital?

Digital storage is widely accepted by the IRS and most institutions as long as the scanned copy is clear, complete, and accessible.

Advantages of going digital

• Saves space

• Easy to organize and search

• Safer if encrypted

• Easy to share with accountants or attorneys

Tips for safe digital retention

• Use cloud storage with two-step authentication

• Keep a local backup on an encrypted hard drive

• Organize files by year and document type

• Scan documents as PDFs for long-term readability

For items like wills, deeds, and notarized documents, keep the originals even if you scan them.

6. What Should You Shred When Discarding Documents?

Before discarding old documents, shred anything containing:

• Social Security numbers

• Bank or credit card numbers

• Loan or account numbers

• Medical information

• Signatures

• Tax data

Identity theft is most likely to occur from improperly discarded paper documents.

7. Frequently Asked Questions

“What tax documents should I save?”

Save all documents that support the information on your tax return, including income forms (W-2, 1099), receipts for deductible expenses, investment records, business receipts, mortgage interest statements, and property tax records.

“How many years should I keep tax records?”

• Minimum: 3 years

• Recommended: 6 years

• Bad debt or securities loss: 7 years

• Real estate/investment records: Ownership + 3–6 years

• Non-deductible IRA contributions: Indefinitely

“What records should I keep for life?”

Vital documents such as birth certificates, marriage certificates, wills, deeds, military records, and key legal documents.

“Do I need to keep old tax returns?”

Yes—keep at least seven years’ worth of tax returns, and many experts suggest keeping them indefinitely because they are compact and often useful.

8. Final Tips for Stress-Free Record Keeping

To stay organized and compliant:

• Set aside one day a year to review and purge documents

• Keep an annual tax folder (digital or physical)

• Create a master list of where important records are stored

• Use labeled folders and consistent naming conventions

• Shred anything no longer needed

Good record-keeping brings peace of mind and protects you financially. With clear retention schedules and a simple system, you can reduce clutter while ensuring you're prepared for any tax or financial situation.