As a general rule, the IRS recommends keeping copies of tax returns and supporting documents for at least three years.
Some documents should be kept up to seven years in case a taxpayer needs to file an amended return or if questions arise including tax documentation related to real estate. Keep these records up to seven years after disposing of the property.
Health care information should be kept with other documents at all times. The records taxpayers should keep include records of any coverage and what type, premiums paid, advance payments of the premium tax credit received through your employer for up to three years. However, it’s important to note that you don’t need to send this information to the IRS as proof of coverage.
For those of you keeping your records in an old shoebox in the back of your closet, now is the time to update and keep your records more safe. Set up a system that is both secure and easy to access when filing next year, applying for a home loan or financial aid. Tax records must support the income, deductions, and credits claimed on returns.
Remember to keep a record of last year’s tax return. This is important due to the fact that the IRS makes changes to authenticate and protect your identity.
The IRS posted some new information regarding E-Filing your records, “Beginning in 2017, some taxpayers who efile will need to enter either the prior year adjusted gross income or the prior year self-select PIN and date of birth. If filing jointly, both taxpayers’ identities must be authenticated with this information”.
If you need to retrieve your tax information, for one reason or another, you can request a free transcript for the past three tax years. The IRS has a great tool called ‘Get Transcript’ that is a quick and easy way to accomplish that.
For more information, visit IRS.gov at How long should I keep Records?