How long should I keep tax records and bank statements?
Asked by: Ms. Pattie Pfannerstill | Last update: December 18, 2025Score: 4.8/5 (10 votes)
How long does the IRS recommend keeping bank statements?
Although this depends on your filing circumstances, the IRS may ask you for supporting documentation for three to seven years after you file a return. Therefore, it's a good idea to save any document that verifies the information on your tax return for seven years or more.
Do I need to keep bank statements for 7 years?
KEEP 3 TO 7 YEARS
Knowing that, a good rule of thumb is to save any document that verifies information on your tax return—including Forms W-2 and 1099, bank and brokerage statements, tuition payments and charitable donation receipts—for three to seven years.
Should I keep my 20 year old tax returns?
Three years is the general recommendation
The general rule for keeping copies of your tax records is to store them for at least three years. Having a paper trail is the best way to protect yourself if the IRS scrutinizes your financial history.
How long should I keep personal bills and bank statements?
Pay Stubs: One year. Match them up to your W2 form, then shred. Bank Statements: One year. But hold onto records related to your taxes, business expenses, home improvements, mortgage payments and major purchases for as long as you need them.
How long to keep bank statements, tax returns and more
How many years of utility bills should I keep?
Keep for a year or less – unless you are deducting an expense on your tax return: Monthly utility/cable/phone bills: Discard these once you know everything is correct. Credit card statements: Just like your monthly bills, you can discard these once you know everything is correct.
Is it safe to throw away old bank statements?
Key Takeaways. Most bank statements should be kept accessible in hard copy or electronic form for one year, after which they can be shredded. Anything tax-related such as proof of charitable donations should be kept for at least three years.
How many years can IRS go back to audit?
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.
Is there any reason to keep old tax documents?
To align with California's statute of limitations, residents should retain their tax returns and all supporting documentation for at least four years. This time frame provides adequate coverage in case of a state audit.
At what age do I stop filing income tax returns?
At What Age Can You Stop Filing Taxes? Taxes aren't determined by age, so you will never age out of paying taxes. People who are 65 or older at the end of 2024 have to file a return for tax year 2024 (which is due in 2025) if their gross income is $16,550 or higher.
How long should I keep my credit card statements?
It's generally a good idea to keep your credit card statements for at least 60 days, in case you need to dispute any errors. If your credit card statements relate to your taxes, you may want to maintain your financial records for three to seven years.
Do I need to keep old checkbook registers?
Checkbook Registers: Up to 10 Years
“Not only are they the story of a year, but if you use them regularly, it's a reference for expensive purchases or services that you didn't keep receipts for.” (Plus, these are records that do not exist digitally, meaning you need to keep them longer.)
How long to keep documents before shredding?
For Individuals: Tax Returns and Supporting Documents: Keep for at least 7 years. The IRS has a three-year audit window, but it's safer to go with seven just in case of additional inquiries. Bank Statements: Hold on to these for 1 year unless they're tied to tax filings.
Should I shred old tax returns?
Keep records on assets such as stocks, bonds, and your home until the statute of limitations expires for the tax year in which you sell them. Dispose of old tax documents securely by shredding them or using a shredding service.
What papers to save and what to throw away?
Credit card receipts: Discard them after a purchase shows up on your statement unless you need them as records for taxes or as proof of purchase in case you need to return an item or make a warranty claim. Pay stubs: Save them until you reconcile them with your W-2 form and yearly Social Security statement.
What records need to be kept for 7 years?
How long to keep records. Records must be kept for 6 years from the end of the financial year they relate. In essence this means you need to keep all records for 7 years (as it's 6 years plus a year to count for the financial year). HMRC has begun a compliance check into your Company Tax Return.
What year tax documents can I destroy?
Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
How many years should you keep bank statements?
Credit card and bank account statements: Save those with no tax return usefulness for about a year, but those with tax significance should be saved for seven years.
Which tax documents should I keep?
Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. These documents contain the information you need to record in your books. It is important to keep these documents because they support the entries in your books and on your tax return.
Can the IRS come after you after 7 years?
The IRS generally has 10 years from the assessment date to collect unpaid taxes. The IRS can't extend this 10-year period unless the taxpayer agrees to extend the period as part of an installment agreement to pay tax debt or a court judgment allows the IRS to collect unpaid tax after the 10-year period.
What will trigger an IRS audit?
Not reporting all of your income
The IRS will typically receive a copy of all the tax forms that you do, including distributed income. The IRS will match the reported items to a person's return. If they see something missing, they will automatically conduct at least a letter audit.
Does the IRS destroy tax records after 7 years?
Does the IRS destroy tax records after 7 years? No, the IRS destroys most individual returns after 6 years, unless the timeline is extended because they are associated with an “open balance due.” For example, returns filed in 2019 will likely be destroyed in 2026.
When should you destroy bank statements?
It's a good idea to hang onto bank statements, but not forever. All bank statements, pay slips and credit card statements (once you've paid the bill) should be shredded and disposed of after one year. Sales and ATM receipts, on the other hand, should be shredded after one month, unless you need them for tax purposes.
Should I shred everything with my name and address?
Even if they steal your shredded documents, it's not worth it for them to try to piece them back together. As a general rule, you should always shred unneeded documents that contain your Social Security number (SSN), signature, account numbers, phone number, birthdate, passwords, PINs, and full address.
Is it worth keeping old bank statements?
Reviewing bank statements helps identify spending habits, budget effectively, set financial goals, and verify all transaction activity on your accounts. Keeping at least 1 to 2 years of statements is useful for personal financial management and security.