What tax records should you hang onto, and when can you safely toss them?

You’ve filed your taxes, and now you're staring at a mountain of paperwork. Tempted to toss it all? Not so fast. Here’s the playbook on what stays and what goes.

Income & Expenses Hold onto your W-2s, 1099s, K-1s, bank statements, and canceled checks for at least three years after filing. Six years is smarter—why? The IRS can audit up to six years if they suspect income’s been underreported. In other words, play it safe and keep everything.

Investments Sold some investments? Keep the receipts. Hold onto purchase records, sales data, and brokerage statements for as long as you keep the tax return that reports the sale—again, three years minimum, six if you want peace of mind. These documents are your key to calculating gains and losses accurately.

Home Purchases & Improvements Bought a house? Don’t ditch those closing statements. Home improvements? Keep those records too. Most homeowners won’t pay tax on a sale thanks to the $250k/$500k exemption, but if you rented it out or had a home office, you might be looking at taxable profit.

Tax Returns Your tax return is your ultimate safety net. Keep it forever. If the IRS has no record of your filing, they can come knocking at any time. Your return is your proof, so don’t let it disappear.

In short, when in doubt, keep it. Those records aren’t clutter—they’re your best defense against future tax drama.