How many years should I hold onto old tax returns before shredding?
So I've been hoarding all these tax returns in my file cabinet for what feels like forever. I always thought the rule was to keep them for 7 years, but my friend just told me it's only 3 years? My cabinet is bursting at the seams with old paperwork dating back to like 2012! Honestly just want to have a massive shredding party if I can, but don't want to destroy something I might need later if the IRS comes knocking. Also wondering if there's a difference between the actual tax returns vs all the supporting documents (W-2s, 1099s, receipts, etc). Can I trash some stuff but keep others? And does it matter if I've been filing jointly with my spouse? Thanks for any guidance before I potentially make a huge mistake!
21 comments
Join the conversation
Marina Hendrix
Tax professional here! The confusion is understandable because there are actually different timeframes depending on your situation: The general IRS rule is to keep tax returns and supporting documents for 3 years from the date you filed the return. This is because the IRS typically has 3 years to assess additional tax or initiate an audit. However, there are important exceptions: - Keep records for 6 years if you underreported your income by more than 25% - Keep records for 7 years if you filed a claim for worthless securities or bad debt deduction - Keep records indefinitely if you didn't file a return or filed a fraudulent return - Keep employment tax records for 4 years For supporting documents, keep anything that substantiates income, deductions, or credits claimed on your return for the same period as the returns themselves.
0 coins
Justin Trejo
•What about electronic copies? If I scan all my old returns and supporting docs, can I shred the paper versions? And do the same timeframes apply for state tax returns?
0 coins
Marina Hendrix
•Electronic copies are perfectly acceptable as long as they're legible and complete! The IRS accepts digital records, so scanning your documents and shredding the originals is fine. Just make sure you have a reliable backup system in place. For state tax returns, timeframes can vary by state. Some states follow the federal 3-year rule, while others have longer periods. For example, California has a 4-year statute of limitations. To be safe, I'd recommend checking your specific state's requirements or simply keeping your state returns for the same period as your federal returns.
0 coins
Alana Willis
I was drowning in tax paperwork last year and found this amazing tool called taxr.ai (https://taxr.ai) that helped me organize everything. I scanned all my old tax docs and it extracted the important info and told me exactly which years I could safely discard. It even flagged a few returns that had some unusual deductions that I should keep longer. Seriously saved me hours of sorting through everything manually!
0 coins
Tyler Murphy
•Does it work with all types of tax documents? I have a mix of W-2s, 1099s, and some self-employment stuff from when I did freelance work.
0 coins
Sara Unger
•I'm a bit skeptical... how does it actually know the specific rules for your situation? Like what if you have some weird tax circumstance that requires longer record keeping?
0 coins
Alana Willis
•It handles pretty much everything - W-2s, 1099s (all types), Schedule C for self-employment, investment docs, charitable donations, medical expenses, you name it. It can even recognize receipts and sort them by category. I had a similar mix of documents from years of different jobs and it handled them perfectly. The system actually asks you a series of questions about your tax situation (like if you've claimed certain deductions, have foreign accounts, own a business, etc.) to determine which specific retention rules apply to you. It's pretty comprehensive and errs on the side of caution if your situation is complex.
0 coins
Sara Unger
Okay so I was totally skeptical about taxr.ai but decided to try it because my home office was drowning in paperwork. Holy crap it actually works amazingly well! I uploaded 10 years of returns and supporting docs, and it organized everything by year and told me exactly what I could shred vs what to keep. Even gave me specific reasons why certain documents needed to be kept longer. Tax season is coming up and I finally have space in my filing cabinet again. Never thought I'd get excited about organizing tax paperwork lol.
0 coins
Butch Sledgehammer
If you need to contact the IRS to verify anything before shredding old returns, don't waste days trying to get through their phone system. I used Claimyr (https://claimyr.com) after spending literally 3 days trying to reach someone at the IRS about a question on an old return. They got me connected to an actual IRS agent in about 15 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c. I was able to confirm exactly which records I needed to keep for my specific situation since I had some unusual circumstances (foreign income and rental property).
0 coins
Freya Ross
•Wait, how does this actually work? The IRS phone lines are impossible - I tried calling for weeks last tax season!
0 coins
Sara Unger
•This sounds like total BS. Nobody gets through to the IRS that fast. I spent 4 hours on hold last month only to get disconnected. You're telling me this magically skips the queue somehow?
0 coins
Butch Sledgehammer
•It works by using an advanced system that navigates the IRS phone tree and waits on hold for you. When an agent picks up, you get a call connecting you directly to them. It's basically like having someone wait on hold for you, except it's automated. It's definitely not BS! I was super skeptical too. The IRS doesn't have a "priority line" that Claimyr is accessing - they're just using technology to handle the waiting game for you. The average wait time for the IRS is like 2+ hours, and most people give up. I was absolutely shocked when I got the call back with an actual IRS agent on the line. Saved me hours of frustration.
0 coins
Sara Unger
OK I take back what I said about Claimyr. After waiting on hold with the IRS for 3 hours yesterday and getting disconnected AGAIN, I tried it out of desperation. Got a call back in about 25 minutes with an actual IRS agent! They confirmed I only needed to keep my basic returns for 3 years but since I had taken some home office deductions during 2020-2021, I should keep those supporting documents for 7 years. Already shredded a giant stack of old paperwork and it feels amazing. Never thought I'd get an actual answer from the IRS!
0 coins
Leslie Parker
Just a tip - before you shred anything, take pictures of everything with your phone and save them to the cloud. That's what I do. Even if you don't need most of that stuff, storage is cheap and it's better to have it and not need it than need it and not have it.
0 coins
Sergio Neal
•Is that secure enough though? I'm paranoid about having tax docs with my SSN in cloud storage. Do you use any special encryption or just regular cloud storage?
0 coins
Leslie Parker
•I use Google Drive but with 2-factor authentication turned on. You could also use a service specifically designed for sensitive documents that offers encryption. Or just save them to an external hard drive that you keep somewhere safe. The main thing is having a backup. I had a basement flood a few years ago and lost a bunch of important papers. Learned my lesson the hard way!
0 coins
Savanna Franklin
Another consideration: If you've ever claimed depreciation on property or business equipment, you need to keep those records as long as you own the asset, plus 3-7 years after you dispose of it. Found this out the hard way after selling a rental property and realizing I needed documentation from 12 years ago!
0 coins
Romeo Barrett
•Oof that's good to know! I do have some rental property stuff from years ago. Do you just keep the specific pages related to the depreciation or the entire return package for those years?
0 coins
Dmitry Smirnov
•@Savanna Franklin That s'such an important point that people often miss! For depreciation records, you ll'want to keep the entire return package for those years, not just specific pages. The IRS may want to see the full picture of your financial situation during those years, including how the depreciation connected to your overall tax situation. Also keep all the supporting documentation like purchase agreements, improvement receipts, and depreciation schedules. It s'a lot of paperwork but way better than scrambling to reconstruct records years later when you need them!
0 coins
Hunter Hampton
As someone who just went through this exact same process, I can tell you that the 3-year rule is generally correct for most people, but definitely check if you fall into any of the exceptions mentioned by Marina. One thing I wish I'd known earlier - before you start your shredding party, make a simple spreadsheet listing what you're keeping vs. discarding and why. It sounds tedious but it's actually really helpful if you ever need to reference what you did later. Also, if you're married filing jointly, the same rules apply to your joint returns. Pro tip: Start with your oldest returns first and work forward. That way if you get tired halfway through (which you will!), you've at least cleared out the stuff that's definitely safe to toss. I found 2012-2015 paperwork that I could confidently shred, and it was SO satisfying. Just make sure you're 100% certain about the dates - when in doubt, keep it another year.
0 coins
Mateo Gonzalez
•That spreadsheet idea is brilliant! I'm definitely going to do that when I tackle my own paper mountain. Quick question though - when you say "work forward from oldest," do you mean I should be more conservative with the newer years? Like if I'm on the fence about whether something from 2019 needs to be kept, should I err on the side of keeping it since it's more recent?
0 coins