You file your taxes every year, but do you feel confident in the records you keep afterward? Keeping accurate tax records is an important part of maintaining your financial stability. These helpful tips from the IRS will show you how to maintain your tax records. Here are some of the IRS's tips:
- The IRS recommends that you keep your tax records for 3 years.
- Hold on to documents related to the purchase or investments and retirement accounts for more than 3 years.
- Although the IRS doesn’t require you to keep your records in a specific format, as a general rule you should keep anything that could possibly have an impact on your federal tax return.
- To support deductions or credits you claim on your tax return, you should keep records of bills, credit card statements, receipts, invoices, mileage logs, cancelled or substitute checks and proofs of payment of any kind.
For more tips, visit the IRS website!