From Kiplinger · · 3m
How long to keep your old tax returns
A tax editor answers four reader questions, from shredding old records to why one big tax law now has two names.
In brief
A tax editor answers four reader questions, from shredding old records to why one big tax law now has two names. Three years is the baseline for keeping tax returns, but six years, forever, and your state's rules are all real exceptions. Originally reported by Kiplinger.
Four reader tax questions
Joy Taylor, editor of The Kiplinger Tax Letter, takes questions from readers each week. This round covers record keeping, deductions, a renamed law, and inherited real estate.
The three year baseline
Keep returns and supporting documents for at least three years from the return's due date. That is roughly how long the IRS has to question your numbers and bill you for more tax.
“you should keep your tax returns and supporting documents for at least three years from the due date of your return”
Three years cuts both ways
The same window is generally your deadline to file an amended return and claim a refund you missed. Miss it and the money stays with the government.
Six years if you underreport
If your return leaves off more than 25% of your income, the IRS can reach back six years instead of three.
“The IRS can go back up to six years if your return omits more than 25% of income.”
Fraud has no clock
If fraud is proven, there is no time limit at all. The IRS can audit a return from any year.
“If fraud is proven, there is no limit.”
Your state may want more
State rules run on their own schedule, and some require you to hold returns longer than three years. Check your state before you shred.
Sort, do not shred blindly
Do not dump everything at the three year mark. Some documents matter later, like basis records for property, and a few can go even sooner.
“don't automatically throw out all of your tax returns and records after three years”
Investment fees are not deductible
A reader asked about writing off an investment newsletter subscription used for options trading. The answer is no, same as portfolio management fees.
Congress killed that deduction
Investment expenses sit in the miscellaneous deductions bucket. The 2017 Tax Cuts and Jobs Act suspended them, and last year's One Big Beautiful Bill made the repeal permanent.
One law, two names
No new big tax bill passed this year. Democrats stripped the "One Big Beautiful Bill Act" short title before the Senate vote, leaving a mouthful of a formal name.
“An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14.”
Now called Working Families
With November midterms coming, Republicans, the IRS and federal agencies are calling it the "Working Families Tax Cuts." Different label, same July 2025 law.
Inherited property with no appraisal
Basis steps up to fair market value on the date of death, so get an appraisal then. Without one, look at comparable 2010 sales first, since tax assessed values usually run low.
“normally, assessed values on those statements are a bit lower than what one can actually sell the property for”
Here's the gist
Three years is the baseline for keeping tax returns, but six years, forever, and your state's rules are all real exceptions.
