We all have that one drawer in the kitchen where all kinds of junk seem to end up.
And while that’s OK with Chapstick, old batteries, and phone-charger cords, it’s not a good approach to managing your financial documents.
The IRS creates guidelines for taxpayers regarding how long to keep records. Remember, there are pros and cons to keeping records longer than the IRS requires.1
Headline: | Don’t Throw It Away … Yet (1) |
|---|---|
Description: | The IRS gives taxpayers a “period of limitations” as a guideline for how long to keep certain records. |
Type of document | How long to keep? |
|---|---|
Past tax returns | 3 years |
Receipts that support tax returns | 3 years |
Employment tax records | 4 years |
If you inadvertently omitted information from your tax returns, including income | 6 years |
If you deducted an uncollectible bad debt or identified an investment or security as worthless | 7 years |
But what about other documents, such personal records like a marriage certificate or school diplomas?
As a general rule, if it’s a one-time issued document, you might want to think twice before getting rid of the record. If it’s a financial record that you get every month, such as a credit card statement, you might have more flexibility about destroying the record.
Headline: | Record-Keeping for Everything Else (2) |
|---|---|
Description: | Personal documents have less structure than what the IRS outlines. Consider keeping some of these documents in a secure, safe place. |
Type of document | How long to keep? |
|---|---|
Paycheck records, canceled checks and other transactions, credit card statements, bank account information, paid-off loans | 1 year |
Records of selling a home, medical bills, canceled insurance policies | 3 years |
Car titles, insurance policies, property records, contracts, pension information, home improvement records, warranties | Hold while they are active |
Diplomas, Social Security cards, marriage licenses, birth certificates, estate documents, death certificates, military discharge papers | Hold forever |
If managing financial documents or preparing your taxes is a little overwhelming this year—or if you would just like a second opinion on your approach—we’d welcome the opportunity to introduce you to cfd Tax Preparation & Bookkeeping. Our tax team includes certified public accountants and other specialists who are dedicated to helping people manage their financial records with confidence.
- IRS.gov, 2026
