How Long Should I Keep Personal Receipts?

Knowing how long to keep receipts can prevent tax and merchandise return problems.

For General Merchandise Receipts

Most stores require a receipt for a returned item. For that reason, you should keep receipts for general merchandise until the time period, during which the store will accept a return, has elapsed (30 days in many cases). This way, if you decide the item doesn't suit you, or it breaks, you can return it.

For Tax Purposes

Some purchases or payments may be deductible on your personal income tax. Medical expenditures that exceed a certain portion of your income, child care costs, work related purchases, job relocation costs and non-profit donations are among them. Therefore, if you generally itemize your deductions on your tax return, it is important to keep receipts for those deductions. Also, since the IRS can audit individuals up to three years after a filing, you may need to produce those receipts sometime within the following three years.

Bottom Line

For general merchandise purposes, hold onto receipts only for as long as you can return the item if you choose to. Keep receipts you used as income tax deductions for three years after the filing on which you claimed them.

References

• IRS: Why Keep Records
• University of Illinois Extension: What Do I Do With... Financial and Tax Records
• Bank Rate: How Long to Keep Financial Records