How to Retain Personal Income Tax Records
According to the IRS, you should keep your personal tax records as long as you have need of them. The IRS breaks down tax records into different categories. Some you will need to keep for 7 years. Other records, such as those relating to property and information about depreciation, you will need to keep for as long as they have bearing on your taxes. How you keep the records is up to you.
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Instructions
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Save electronic images of your personal income taxes. If you filed on line, be sure to save a copy to your computer. You may also want to burn a copy to a CD and secure it in a different location in case of fire or flood. The IRS recommends saving any information you used to file your income taxes, such as W-2s, 1099s and any receipts, for six years in case of an audit.
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Print out a copy of your personal income taxes. Electronic copies are great, but it is also handy to have a hard copy of your personal income taxes. Banks and lending institutions usually require three years of tax records for loan purposes.
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Keep records on personal items, such has rental properties you own, for as long as you own them. These records will help in determining capital gains and losses, as well as figuring depreciation over periods longer than the seven years the IRS recommends.
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Tips & Warnings
If you need copies of your past personal tax records, file Form 4506T to obtain them. There is a nominal cost involved and it will take about 60 days to receive your information from the IRS.
Secure your records from identity theft.
