How long to keep financial records

Tax returns and the records behind them

The IRS's rules are tied to the period of limitations: the window in which you can amend a return or the IRS can assess more tax. Its page on how long to keep records sets out these periods for income tax records:

"Records" means more than the return itself. It's the papers that back it up: W-2s and 1099s, receipts, canceled checks, records of charitable gifts, and anything else that supports a number you reported. If you have household employees, the IRS says to keep employment tax records for at least four years after the tax is due or paid, whichever is later.

Two more points from the same IRS page are easy to miss:

• Keep copies of the returns themselves. The IRS suggests it, because old returns help when you prepare future returns or amend one.
• Other people may want them longer. Before you toss anything, the IRS notes that your insurance company or creditors may require you to keep records longer than it does.

Which period applies to you is a question for your tax preparer or the IRS, not for a checklist. If you're not sure, ask before you shred.

Home and other property

Property records follow a different clock. The IRS says to keep them until the period of limitations runs out for the tax year in which you sell or otherwise dispose of the property, because you need them to figure depreciation and any gain or loss when you sell. For a home, that usually means:

• The closing papers from when you bought it
• Receipts for improvements, like a new roof, an addition or a remodeled kitchen
• The deed and mortgage papers

If you've owned the house for twenty years, that can mean twenty-plus years of receipts. A labeled folder, or a scanned one, makes that easier on whoever sells it.

The FTC's guide on which documents to keep and which to shred puts vehicle titles, deeds, mortgage and car loan documents, leases, and receipts and warranties for appliances in its "keep while you own" group.

Retirement account paperwork

One long-lived record surprises people. If you ever made nondeductible contributions to a traditional IRA, the IRS's instructions for Form 8606 say to keep certain records until all distributions are made from your IRAs. That includes Form 8606 for each year it applies, the first page of your Form 1040 for years you made a nondeductible contribution, the annual contribution statements (Form 5498), and Forms 1099-R for years you took money out. That paperwork can matter decades later, so it's worth a folder of its own.

Bank and credit card statements

The FTC groups bank statements, credit card bills and utility bills under "keep for a year." If you can get them online, it suggests considering shredding the paper copies.

The exception: if a statement supports something on your tax return, like a deductible expense, it moves to the tax pile and follows the tax rules above.

Pay stubs

The FTC also puts pay stubs in the one-year group. One simple approach: keep them until your W-2 arrives, check that the totals match, then keep the W-2 with your tax records and let the stubs go once the year is up.

Medical bills

The FTC lists medical bills you haven't disputed under "keep for a year." Keep a bill longer if you're disputing it, if it's tied to an insurance claim that's still open, or if you're deducting medical expenses, in which case it belongs with your tax papers.

Papers to keep for good

Some papers don't expire. The FTC's "keep forever, and lock up" list includes birth certificates and adoption papers, Social Security cards, valid passports, citizenship or residency papers, marriage licenses, divorce decrees, military records, wills, living wills, powers of attorney, retirement and pension plan documents, family members' death certificates, and older health records that predate electronic records. Our guide to what to keep in a fireproof safe covers where those can live.

What to shred

From the FTC's list: ATM receipts, credit and insurance offers, cleared checks after 14 days (canceled checks that support your tax return belong with your tax records instead), old credit reports, prescription information for medicines you no longer take, expired warranties, and expired credit cards, driver's licenses and other IDs.

Old credit reports are safe to shred because you can get a fresh one. The FTC says the three nationwide credit bureaus let you check your report from each once a week for free at AnnualCreditReport.com, the only site authorized to fill orders for the free reports you're entitled to by law.

Anything with personal or financial information on it should be shredded, not tossed. No shredder? The FTC suggests looking for a community shred day.

If you need a copy later

Throwing out a paper return isn't the end of the line. The IRS's Get Transcript page lets you view or download transcripts of past returns through your IRS online account, or have them mailed. For a photocopy of the actual return, the IRS says to file Form 4506, Request for Copy of Tax Return. Banks and card companies often let you download older statements online, too.

After a fire, flood or other disaster, the IRS has a page on reconstructing records, including how to mark Forms 4506 and 4506-T so they're processed faster and the usual fee is waived.

Write down where they are

Keeping the right records only helps if someone can find them. Make a short note of where the tax returns are, where the supporting papers are, which drawer or inbox holds the statements, where the house folder lives, and who prepares your taxes. If your returns are in a tax software account or with a preparer, write that down too.

For the bigger picture of sorting a house full of papers, see our guide to organizing important documents at home.

This guide is general information, not legal, tax, investment or insurance advice. Record-keeping rules depend on your situation and can change, so check the linked IRS and FTC pages. For questions about your own tax records, talk with a tax professional or the IRS. Last reviewed October 2026.