W2 how long to keep

If you're wondering how long to keep tax records, here's what the IRS recommends based on how long it has to come back at you with questions.

In typical tax-filing situations, the IRS has three years to decide whether to audit — or, as the agency prefers to call it, examine — your return. That means you should keep your tax records for three years from the date you filed the original return. This is good practice, too, because you generally have three years from when you filed your return — or two years from the date the tax was paid, whichever is later — to claim a refund or credit from the IRS.

You also should hang on to tax records for three years if you file a claim for a credit or refund after you filed your original return.

The limit here could be shifted to two years from the date you paid any due tax, if that date is later than the three-year limit. The three-year audit period and associated record-keeping guidelines apply in standard filing circumstances. If, however, you don't include all your earnings on your , the IRS gets a longer window to decide on a potential audit, so you need to keep your tax records longer, too. To deal with any questions, you would need to have those six years worth of tax documents on hand.

Sometimes a stock bet doesn't pay off. That's how long the IRS has to come back with questions about your bad investment. The same time frame applies to deductions for a bad debt. There are some instances in which to keep tax records perhaps forever. Say someone — not you, of course — commits tax fraud. There is no statute of limitations on tax fraud audits.

When the IRS suspects someone entered illegal information on a return, it can investigate at any time, not just within the standard three-year window. You also need to keep documentation of why you didn't file a tax return.

Yes, that sounds like trying to prove a negative, but if, for example, you took a year off to take care of a sick relative and didn't earn enough income to require that you file, proof of that will short-circuit a detailed IRS examination of your missing tax year.

W-2 form s. Alimony received. Alimony paid. See IRS Publication for more details. Similar rules apply for any rental properties you own; save records relating to your basis for at least three years after selling the property. Don't forget to check your state's tax record retention recommendations, too. The tax agency in your state might have more time to audit your state tax return than the IRS has to audit your federal return.

For instance, the California Franchise Tax Board has up to four years to audit state income tax returns, so California residents should save related documents for at least that long. Skip to header Skip to main content Skip to footer. Home taxes. When Do Monthly Payments Arrive? And Other FAQs.

W-2 forms reporting income; forms showing income, capital gains, dividends and interest on investments; forms if you deducted mortgage interest; Canceled checks and receipts for charitable contributions; Records showing eligible expenses for withdrawals from health savings accounts and college-savings plans ; and Records showing contributions to a tax-deductible retirement-savings plan, such as a traditional IRA.

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Dropping a tax check in the mail doesn't mean you can then throw out the paperwork. However, there are limits to how far back the government can look.

IRS documentation requirements The IRS recommends taxpayers keep their returns and any supporting documentation for three years after the date of filing; after that, the statute of limitations for an IRS audit expires.

State documentation requirements If you're paying state income taxes, the time you need to keep records will depend on state law. Best to check with your state tax authorities to get specifics. Record-keeping on assets You might be wise to keep records on assets such as stocks, bonds or your house longer than the statute of limitations suggests. Organizing your tax records If you have an efficient record-keeping system, it can make finding information a lot easier. All you need to know is yourself Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest.

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