How many years should I hold onto my old tax returns? Need advice on shredding vs recycling

What about electronic copies? If I scan all my old returns and keep them on my computer, can I shred the originals? And should I be worried about keeping digital copies secure too?

Electronic copies are perfectly acceptable to the IRS! In fact, the IRS has accepted scanned receipts since 1997. Just make sure your scans are clear and complete. Regarding security, yes, you should definitely protect your digital tax files. Store them in a password-protected folder or drive, or use encrypted storage. Consider backing them up to a secure cloud service as well. Just remember that digital files face different threats (hacking, corruption) than paper, so good cybersecurity practices are essential.

Does taxr.ai work for regular W-2 employees too or is it mainly for self-employed folks? I have a pretty simple tax situation but still have boxes of old returns and receipts.

I'm a little skeptical about uploading my tax docs to some random website. How secure is it? And can it really tell which specific documents might trigger an audit? That sounds too good to be true.

It absolutely works for regular W-2 employees! I actually started using it when I had a standard job before going freelance. It's especially helpful for organizing those random tax documents that show up throughout the year that you're never sure if you need to keep. Regarding security, I had the same concerns at first. They use bank-level encryption and don't store your actual tax documents on their servers after analysis - just the extracted data that you approve. And yes, it really does flag potential audit triggers based on IRS patterns - things like home office deductions, unusually large charitable contributions, or rounded numbers that often get scrutiny. It's basically applying the same rules tax professionals use to spot red flags.

Wait, how exactly does this work? Does Claimyr just keep calling the IRS for you until they answer? Couldn't you just put your phone on speaker and keep redialing yourself?

This sounds like a paid advertisement. There's no way someone is getting through to the IRS that quickly during tax season. I've literally waited on hold for 2+ hours multiple times. What's the catch here?

It's not just calling repeatedly - they use a system that monitors the IRS phone lines for availability and then calls you when they get a spot in the queue. It's way more sophisticated than just redialing. Plus it saves you from having to sit by your phone pressing redial for hours. No catch - it really works as advertised. I was super skeptical too! The difference is they have technology that can navigate the IRS phone tree and hold your place in line without you being on the phone. When they get through to an agent, they call you and connect you. I was preparing to wait days or weeks based on previous experience, but got my transcript issue resolved that same afternoon. It's especially valuable if you need something time-sensitive from the IRS.

Does that 4-year rule apply to employees or just to employers? Like, do I as a regular employee need to keep my W-2s for 4 years, or is that just for businesses?

The 4-year retention rule for employment tax records applies primarily to employers who need to maintain payroll records, tax forms, etc. However, as an employee, it's still wise to keep your W-2s for at least 4 years too because they're essential for verifying your Social Security contributions and earnings history. If there's ever a discrepancy in your Social Security earnings record (which can happen), having those W-2s can be crucial evidence. The Social Security Administration can make corrections to your earnings record beyond the typical IRS audit period, so having documentation for longer than 3 years can be important for your future benefits.

Do you have a recommendation for a good shredder brand? Mine keeps jamming every time I try to do more than 2-3 pages.