Why Receipts Matter After You File
Receipts are supporting documents that back up the income, deductions and credits on your return. The IRS explains what records to keep to prove those entries. That includes receipts for charitable donations if you deduct gifts to charity.
Under IRS recordkeeping guidelines, you keep these records until the period of limitations runs out. The period of limitations is the window when you can amend your return to claim a credit or refund, or when the IRS can assess additional tax.
The clock starts when you file. If you file early, the IRS treats your return as filed on the due date.
How Long to Keep Receipts for Taxes by Situation
The 3-year rule covers most returns. These situations change the timeline.
| Your situation | How long to keep records |
|---|---|
| You filed a typical return | 3 years from filing |
| You file a claim for a credit or refund after filing | 3 years from filing or 2 years from paying the tax, whichever is later |
| You claim a loss from worthless securities or a bad debt deduction | 7 years |
| You don’t report income you should have, and it’s more than 25% of the gross income on your return | 6 years |
| You don’t file a return | Indefinitely |
| You file a fraudulent return | Indefinitely |
| You have employment tax records | At least 4 years after the tax is due or paid, whichever is later |
A few terms in the table may be new to you. Worthless securities are investments, like stocks or bonds, that have lost all their value. A bad debt is money owed to you that you can’t collect, and gross income is your total income before deductions.
Keeping Records for Your Property
Property records follow a longer clock than everyday receipts. Keep them until the period of limitations expires for the year you dispose of the property, meaning you sell it or otherwise give it up.
You need these records to determine any gain or loss when you sell any property (and for any rental or business assets, for depreciation). If you own a property for 20 years, you’d keep its records for those 20 years plus the period of limitations for the return covering the sale.
In certain limited situations, a taxpayer can exchange one property for another and no tax is paid at the time of the exchange. In that case, keep records for both the old and new property. Hold on to them until the period of limitations expires for the year you dispose of the new property.
What to Keep Beyond Tax Receipts
Copies of Your Filed Returns
Keep copies of every return you file. They help you prepare future returns and make it easier to file an amended return. Past returns are especially handy if you’re filing taxes by yourself and want to check last year’s numbers.
Records You May Need for Nontax Reasons
Before you throw out old records, check whether you need them for anything other than taxes. Your insurance company or creditors may require you to keep some records longer than the IRS does.
