March is here, and with spring in the air, it is the perfect time to tackle some financial housekeeping. One of the most common questions we get this time of year is: “How long do I really need to keep all this tax paperwork?” Let’s clear out the clutter and give you a straightforward plan.
Tax Returns: Keep Them Longer Than You Think
The IRS generally has up to three years after the filing deadline (or the date the return is filed, if later) to audit a return. That means (in addition to your 2025 return), at minimum, you should hang on to your 2024, 2023, and 2022 tax returns and supporting documents right now.
But three years is just the starting point. If you unintentionally underreport more than 25% of your gross income, the IRS gets six years to come knocking. And in rare cases of fraud, there’s no statute of limitations at all.
Our advice? Keep copies of the actual tax returns forever. They’re small files, and you’ll thank yourself later when you apply for a mortgage, refinance, or need to establish the original cost of an asset.
Documents You Should Keep (and for How Long)
Beyond the returns themselves, hold on to the paperwork that backs them up:
- W-2s, 1099s (interest, dividends, capital gains, freelance income, etc.)
- Receipts and canceled checks for charitable contributions
- Records of deductible expenses (medical, business, education, etc.)
- Documentation for HSA and 529 plan withdrawals
- Form 8606 (nondeductible IRA contributions) — keep until all funds are withdrawn from all traditional IRAs
- Records of loss carryforwards (capital losses, passive activity losses, excess charitable contributions, investment interest expense, etc.)
Investment Records: Don’t Rely Solely on Your Broker Transnational
Keep your own records of:
- Purchase date and cost of stocks, mutual funds, and ETFs in taxable accounts (Brokers are required to track cost basis for stocks bought 2011+, funds/ETFs 2012+, but if you switch brokers or the data gets lost, you will be glad you have your own copies.)
- Step-up in basis documentation when you inherit investments (the fair market value on the date of the original owner’s death)
The Easiest Way to Declutter Without Risk
Go digital. Scan everything—old returns, brokerage statements, receipts, Forms 8606, the works—and store them securely in the cloud or on an encrypted external drive. PDFs are ideal: small, searchable, and virtually indestructible.
Once you’ve scanned and verified that the files are legible and complete, you can confidently shred most of the paper (except anything with an original signature that might still be required, like certain legal documents).
Your March Action Plan
- Gather 2022–2025 tax files and supporting docs.
- Scan anything that’s only on paper.
- Organize digital folders by tax year.
- Shred the paper you no longer need.
- Sleep better knowing you’re audit-ready and clutter-free.
Spring cleaning isn’t just for closets—give your financial files the same fresh start this month.