Individual Record Retention Guide

Keeping your records organized is essential for managing your finances, especially for tax purposes. Here’s a straightforward guide on how long to retain various types of documents.

Tax Returns & Supporting Documents

• Tax Returns & Worksheets: Forever – Essential for your tax history.
• Supporting Documents (W-2s, 1099s, Receipts): 6 Years – Important for audits or disputes.
• Tax Payment Checks: Forever – Particularly for IRS payments.
• Amended Returns: 6 Years – Keep proof of any changes made.

Property & Capital Gains

• Home Purchase & Improvement Records: 6 Years After Sale – Needed for capital gains exclusions.
• Investment Trade Confirmations: 6 Years After Sale – Includes stocks, crypto, and collectibles.
• Depreciation Schedules: 3 Years After Last Use – Maintain until you dispose of the asset.

Financial & Expense Records

• Credit Card Statements: 3 Years – Longer if used for tax deductions.
• Bank Statements: 3-6 Years – Useful for proving income or expenses.
• Utility Bills: 3 Years – Keep only if used for home office deductions.

Income & Employment

• Pay Stubs: Until W-2 is Verified – Then you can shred them.
• W-2s / 1099s: 6 Years – Required for audits or benefit calculations.
• Unemployment Records: 6 Years – Important for state and federal verifications.

Family & Personal Life

• Vital Records (Birth, Marriage, Divorce, Death Certificates): Forever – Needed for legal, tax, and Social Security purposes.
• Custody/Adoption Agreements: Forever – Required for child tax credits or dependents.
• Medical Bills (Tax-related): 6 Years – Especially if itemized deductions apply.

Vehicle & Other Personal Assets

• Vehicle Purchase/Repair Records: Until Sold – Useful for basis and warranty claims.
• Car Mileage Logs (Business Use): 3-6 Years – Necessary for IRS mileage deductions.
• Receipts for Major Purchases: Life of the Product – Keep until the warranty expires.

Education & Healthcare

• 1098-T (Tuition) & Student Loan Records: 6 Years – Needed for education credits and deductions.
• HSA/MSA Distributions: 6 Years – To track eligible medical expenses.
• Medical and Dental Expenses: 6 Years – Required if deducted or reimbursed from HSA.

Retirement & Investments

• IRA, 401(k), Roth IRA Contribution Records: Forever – To track basis and avoid double taxation.
• 1099-R & 8606 Forms: Until All Funds Are Withdrawn – To accurately track retirement income.
• Pension Statements: Forever – Important for proof of retirement and handling disputes.

Special Circumstances

• Insurance Policies: Life of the Policy – Including related claim records.
• Legal Agreements/Contracts: Forever – Important for estate planning, custody, and alimony.
• Records for Theft or Casualty Losses: 6 Years – Necessary for itemized deduction eligibility.

Keeping these records can help you stay organized, confident, and compliant with your financial responsibilities.