C-Corp and individual extended tax returns are due October 15!

Home › Tax Filing › How Long Should You Keep Tax Returns

How long should you keep tax returns

tax-fling

How long do I need to keep my tax records for?

Let's face it – keeping track of tax records isn't exactly the most glamorous part of being self-employed. But it's a necessary evil if you want to keep the IRS happy. So for how long should you keep these records? The answer is not super straightforward. As a rule of thumb, you’re supposed to keep your tax records for three years from your last filing date in case you get hit with an IRS audit notice. This is because the IRS has three years to look over your tax return and decide whether you need to be audited. But there are other rules that are dependent on what kind of assets you own, the tax refunds you might be eligible for and if you’ve not filed a return in a couple of years (hopefully not because you love tax fraud). Key takeaways:
  • Generally, the IRS expects you to keep your tax records of the past three years
  • You will need to keep your tax records for longer if you own other assets
  • You will need to show proof of all your returns and other relevant tax information if you get audited

Table of contents

Saving tax returns...Read more

What tax documents should I save?...Read more

How do I store these returns?...Read more

Saving tax returns

As a 1099 taxpayer, it’s always on you to keep a record of all your tax information. But figuring out how long you should keep your tax records depends on a few things. Typically, it’s necessary to maintain tax records, business records and receipts for at least three years. This rule is implemented to let the IRS conduct an audit within a three-year window and determine if you owe them any extra taxes. You also need them if you’re trying to file for a refund past the original year you should have claimed it. Sometimes, you may be required to retain your tax records for longer. For example, if you underestimate your income by over 25%, the statute of limitations is extended, allowing the IRS to conduct an audit on your return for up to six years. To address any inquiries during this time, you would need to retain tax documents spanning six years.
Infographic entitled How Long Should I Keep My Tax Returns showing the common periods of time tax returns should be saved.
If you’re trying to depreciate any kind of property that you own, you are generally expected to hold on to those tax records until you have fully written off that asset. This also applies to any kind of retirement accounts (like IRAs) that you’re currently using. In this case, you would wait until you have fully cleaned out the account. The amount of time you should keep your financial records when paying income taxes can also depend on state law and can differ by location. It's worth noting that some states may have a longer look-back period than the IRS, meaning that you need to keep records for an extended period. For example, Texas has a limit of four-year statue of limitation while it’s only three in New York. You can always ask a CPA in your state to be on the safe side.

Quick tip

Visit the tax refund page if you’re still waiting on your refund from the IRS.

What tax documents should I save?

So, now that you know how long you’ll need to keep your tax returns, let's move on to what kinds of information you’ll actually need to save. If you operate as an LLC or a Partnership, you’ll need to save your employees’ tax information even if they've left the business for at least four years. If you’re operating solo, you’ll need to save all the receipts, invoices and proof of any transfers you may have received or sent. Your 1099 forms and bank statements are equally as important to keep. But you don’t have to save all your receipts if an app does it for you. With FlyFin, you can just link your expenses and let an A.I. find all the tax deductions you can claim every tax year. If you want expert advice on 1099 taxes, a team of CPAs is available 24/7 on the app. They can even help you by preparing and filing your federal and state tax returns.
Infographic entitled Important Tax Documents You Need To Save listing 14 types of information documents to save apart from your tax returns.

How do I store these returns?

You’re probably thinking, “Wow, this is a lot of information the IRS wants me to save.” And you’re right; it is. But you don’t have to stuff it all into an overflowing drawer in the corner of your house. You have the option to can scan and save these documents digitally if you want to save some space. The IRS will still accept them as long as they are readable. And if you save your records electronically, you don't have to worry about how long you’ll need to save them. And even after the IRS limitation has run out, keeping at least a copy of your past returns is a good idea, even if it’s paperless. If your original tax return documents have gone missing or been destroyed, don't worry - the IRS has a solution. You can ask them for a copies of your tax returns and duplicate transcripts if you need them. You have a few options to request this, like reaching out directly to the agency through their website, sending an email, giving them a call or even mailing in a written request.

How To File Patreon 1099 Taxes

Patreon creators can use FlyFin’s 1099 calculator to find business expenses they can write off on their tax forms.

Tax Write-Offs

Self-employed individuals can use tax write-offs to lower taxes. These itemized deductions should be reported on Schedule C.

Tips For E-Filing 1099 Taxes

Filing taxes is a complicated process, but following a few simple but crucial steps can help you be prepared to e-file your 1099 taxes.

Top 5 things to remember about 1099 tax form

Remember these five important things about 1099 taxes, if you're a self-employed individual, freelancer or independent contractor.

Filing Taxes Self Employed

Only FlyFin uses a unique combination of A.I. and CPAs to find every qualifying deduction for freelancers, self-employed individuals and independent contractors.

Deductions For Tax Savings

For freelancers, the most effective way to save on taxes is by taking advantage of tax credits and the many tax deductions they qualify for.

Top Ways To Save Taxes Using Write Offs

Looking to maximize your refund for the 2024 tax filing season? Check out our guide to the top 10 tax write-offs for W-2 employees, independent contractors, self-employed individuals, freelancers and small business owners.

How To Maximize Tax Refund

These tips and tricks can help you maximize your 2024 tax refunds and also help you understand how to minimize your tax liabilities in many more future tax seasons.

Claim Tax Deductions For Small Business

Small business tax deductions are the same as tax write-offs. You can claim a standard or itemized deduction based on your business expenses to decrease your taxes.

Self Employed Tax Filing

Self-employment tax forms like Schedule C and Schedule SE should be included with form 1040 when filing taxes.

How FlyFin Helps Claiming Tax Write Offs

Tax write offs are business expenses that are tax deductible. With FlyFin, you can easily claim itemized deductions and bring down your tax amount.

File Taxes With W2 and 1099

You can file a 1099 and W-2 together if you receive them in the same year. This can also lower your quarterly tax payments or get you a QBI deduction.

Tax Filing For Green Card Holders

Anyone who has a green card in the USA will need to pay taxes if they meet the IRS-set income threshold.

Avoid Penalties For 4th Quarter Estimated Taxes

Estimated taxes are required for self-employed individuals on a quarterly basis. If you missed the deadline for the fourth quarter, there is still time to make the payments and avoid penalties.

How To Deduct Stock Losses From Your Taxes

Capital loss deductions allow for taxpayers to write off stock market losses and pay less in taxes. The IRS allows you to deduct up to $3,000 per year.

How To File Back Taxes

Everything you need to know about how to file back taxes and claim tax refunds and credits before it's too late. The IRS lets you file back tax returns for up to six years.

How To File Patreon 1099 Taxes

Patreon creators can use FlyFin’s 1099 calculator to find business expenses they can write off on their tax forms.

Tax Write-Offs

Self-employed individuals can use tax write-offs to lower taxes. These itemized deductions should be reported on Schedule C.

Tips For E-Filing 1099 Taxes

Filing taxes is a complicated process, but following a few simple but crucial steps can help you be prepared to e-file your 1099 taxes.

Top 5 things to remember about 1099 tax form

Remember these five important things about 1099 taxes, if you're a self-employed individual, freelancer or independent contractor.

What’s FlyFin?

FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors. But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. technology. Then, our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes. In addition, you can download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and money.
https://dem95u0op6keg.cloudfront.net/image/PriceCalculator.webp

Expert tax CPAs ensure 100%-accurate tax filing

https://dem95u0op6keg.cloudfront.net/image/AiBrain.webp

A.I. finds every tax deduction, eliminating 95% of your work

https://dem95u0op6keg.cloudfront.net/image/MoneySack.webp

On average users save $3,700

rightCTAImage
Was this tip useful?
happy-active
Yes
happy-active
No