Required documents to keep on file:

• Copies of Drivers License or State IDs
• Social Security Cards
• Proof of Residence for dependents claiming EIC

Income documents:

• Income from jobs: forms W-2 for you and your spouse
• Investment income—various forms 1099 (-INT, -DIV, -B, etc.), K-1s, stock option information
• Income from state and local income tax refunds and/or unemployment: forms 1099-G
• Taxable alimony received
• Business or farming income—profit/loss statement, capital equipment information
• If you use your home for business—home size, office size, home expenses, office expenses
• IRA/pension distributions—forms 1099-R, 8606
• Rental property income/expense—profit/Loss statement, rental property suspended loss information
• Social Security benefits—forms SSA-1099
• Income from sales of property—original cost and cost of improvements, escrow closing statement, cancelled debt information (form 1099-C)
• Prior year installment sale information—forms 6252, principal and Interest collected during the year, SSN and address of payer
• Other miscellaneous income—jury duty, gambling winnings, Medical Savings Account (MSA), scholarships, etc.

Other tax documents:

• IRA contributions
• Energy credits
• Student loan interest
• Medical Savings Account (MSA) contributions
• Moving expenses (for tax years prior to 2018 only)
• Self-employed health insurance payments
• Keogh, SEP, SIMPLE and other self-employed pension plans
• Alimony paid that is tax dedcutible
• Educator expenses
• State and local income taxes paid
• Real estate taxes paid
• Personal property taxes—vehicle license fee based on value
• Estimated tax payment made during the year, prior year refund applied to current year, and any amount paid with an extension to file.
• Direct deposit information—routing and account numbers
• Foreign bank account information—location, name of bank, account number, peak value of account during the year

Tax deduction documents:

• Advance Child Tax Credit payment
• Child care costs—provider’s name, address, tax id, and amount paid
• Education costs—forms 1098-T, education expenses
• Adoption costs—SSN of child, legal, medical, and transportation costs
• Home mortgage interest and points you paid—Forms 1098
• Investment interest expense
• Charitable donations—cash amounts and value of donated property, miles driven, and out-of-pocket expenses
• Casualty and theft losses—amount of damage, insurance reimbursements
• Other miscellaneous tax deductions—union dues, unreimbursed employee expenses (uniforms, supplies, seminars, continuing education, publications, travel, etc.)  (for tax years prior to 2018 only)
• Medical and dental expenses

Tax Record Retention Times:

WHEN IN DOUBT, DON’T THROW IT OUT

Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This is called the “three-year law” and leads many people to believe they’re safe provided they retain their documents for this period of time. Even if the original records are provided only on paper, they can be scanned and converted to a digital format. Once the documents are in electronic form, taxpayers can download them to a backup storage device, such as an external hard drive, or burn them onto a CD or DVD (don’t forget to label it). Create a Backup Set of Records and Store Them Electronically. Keeping a backup set of records — including, for example, bank statements, tax returns, insurance policies, etc. — is easier than ever now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. You might also consider online backup, which is the only way to ensure that data is fully protected. With online backup, files are stored in another region of the country, so that if a hurricane or other natural disaster occurs, documents remain safe.

When you plan to discard:

Caution: Identity theft is a serious threat in today’s world, and it is important to take every precaution to avoid it. After it is no longer necessary to retain your tax records, financial statements, or any other documents with your personal information, you should dispose of these records by shredding them and not disposing of them by merely throwing them away in the trash.

Caution: If the IRS believes you have significantly underreported your income (by 25 percent or more), or believes there may be indication of fraud, it may go back six years in an audit. To be safe, use the following guidelines.