How Long To Keep Your Tax Returns

As the Tax Season is heading for the April 15th deadline, you might be wondering what you need to keep, and what you can throw away?

Well before you start tossing stuff out, keep these few things in mind…

The general rule of thumb is to keep your tax returns for 7 years. Here is why:

The IRS has three years after you file your return to conduct an audit only on suspicion of errors.

And here is the crazy thing…the IRS can go back six years to challenge your return if it thinks you under-reported your gross income by 25 percent or more.

On a positive note, there is a three-year window for you to file an amended return, if you discover a mistake and think you can get a refund.

Remember, you need to keep your tax return, canceled checks and receipts (including alimony, charitable contributions, mortgage interest and retirement plan contributions), as well as any records for tax deductions taken, for 7 years.

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