What Records Should You Keep?

All tax records and copies of your tax return should be kept together for at least three years.  The IRS can go back three years to audit your return or just send an inquiry.  We suggest a minimum of the following:

  1. Copies of all W-2’s, W-2P’s, 1099’s, k-1’s and other investment year end statements
  2. Copies of all trade confirms for sales of securities and their corresponding basis information
  3. Copies of all receipts for cash and non-cash contributions with a list of the non-cash items donated and values upon donation
  4. Receipts for any other items you might be deducting for itemized deductions including medical expenses and pharmacy out of pocket expenses. Your pharmacy can give you a printout of your out of pocket expenses for the year
  5. If you own rental property, keep copies of any utility bills you might have paid, real estate tax bills, insurance bills, repairs and any other expenses you may have incurred for that property
  6. If you own a small business, keep your year-end income/expense report and balance sheet. Keep all receipts for expenses for your business and copies of payroll reports filed on behalf of your employees. Also keep business documents ie Articles of Incorporation, letters from either the state or IRS and other relevant documents.
  7. If you sold a primary residence, keep your purchase and sale settlement statements and receipts for any capital improvements and repairs made before sale. If you have taken out a home equity line of credit be sure to document the use of the funds from this line.
  8. If you pay a household employee keep all records of payments to that person along with any payroll expenses filed