Whether you run a business, drive under your own authority or just want your household records in order, the rule is the same: if you might need to prove it later, keep it now.
What to keep
- Receipts and invoices for business expenses, showing the date, the amount, who was paid and what for.
- Bank and card statements that match those receipts.
- Mileage logs and fuel receipts.
- Records for equipment and property you buy, including what you paid and when.
- Copies of filed tax returns.
How long to keep them
The IRS generally says to keep records that support a tax return for at least three years from when it was filed. Some records need longer: six years if income was underreported by more than 25%, seven years for a claim for a bad debt or worthless securities, at least four years for employment tax records, and records for property until the period runs out for the year you sell or dispose of it. Your tax professional can tell you what applies to you.
A weekly habit
Photograph paper receipts the day you get them, name them by date and vendor, and store them in one folder per month. Once a week, match them to your bank and card statements.
Our tax receipts checklist lists what to gather before you meet your preparer.
General information, not tax advice. Talk to a tax professional about your situation.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
