How long should you keep tax returns? A simple guide to tax record retention

Learn how long to keep tax returns and why digitizing them is a safer way to store your documents.

We all know how important it is to save your tax returns, but the question remains — how long should you actually keep tax documents? Whether you’re filing personal taxes, running a small business, or preparing for a potential audit, having the right documents, and keeping them for the right amount of time, can save you stress, time, and money. This guide explains exactly how long to keep tax returns, why retention matters, and how digitizing your documents can make long‑term storage safer and easier.

Why you should keep tax records

Keeping tax documents is important in case of an IRS audit. You’ll need your tax returns to back up your claims about both paid and owed taxes.

Keeping tax records isn’t just good practice, it’s necessary for:

• IRS audits
• Amending a tax return
• Applying for a mortgage or large loan
• Applying for student aid or financial assistance
• Verifying income for government programs
• Preparing future tax returns

Your tax returns and supporting documents help prove what you earned, what you deducted, and what you paid.

How long to keep personal tax returns.

The IRS recommends keeping personal tax returns and supporting documents for at least three years. This covers the standard audit window and ensures you can quickly access information if you need to:

• Respond to IRS questions
• Amend a return
• Verify income
• Provide documentation for loans or financial aid

However, certain situations require longer retention:

• Keep records for 7 years if you file a claim for a loss or bad debt.
• Keep records indefinitely for major purchases, property improvements, or documents related to assets that affect capital gains.

How long to keep tax returns for business.

Businesses, which include freelancers, gig workers, and self‑employed individuals, should keep tax records for at least six years. Business taxes involve more complex documentation, such as:

• Income and expense statements
• Receipts
• Payroll records
• Asset purchases and depreciation
• Mileage logs
• 1099s and invoices

Keeping these records for six years ensures compliance with IRS guidelines and provides a complete financial history if questions arise.

How long to keep physical tax records?

You can keep physical tax records for the same length of time as digital ones:

• 3 years for personal tax returns
• 6 years for business tax returns

However, digitizing your documents offers major advantages:

• Protection from damage or loss

• Easier organization

• Faster retrieval

• Secure backups

• Simple sharing with tax professionals

  If you transition to digital storage, keep physical copies for an extra 1–2 years as a precaution, especially for high‑value documents.
  
  Knowing how to scan receipts and effectively organize them is crucial for tax purposes, especially when considering how long to keep tax returns for a business. By digitizing and categorizing receipts, you can ensure easy access, accurate record-keeping, and seamless tax preparation in the long run.

How long to keep supporting tax documents

Beyond your actual tax return, the supporting documents you collect throughout the year, like receipts, W‑2s, 1099s, bank statements, and deduction records, play a major role in verifying your tax filings.

Keep for 3 years (personal) / 6 years (business):

• W‑2s
• 1099s
• Bank statements
• Credit card statements
• Receipts for deductible expenses
• Medical bills
• Childcare records
• Charitable donation receipts

Keep for 7 years:

• Loss claims
• Bad debt deductions

Keep indefinitely:

• Property records
• Home improvement receipts
• Investment purchase records
• Business ownership documents

How to save tax returns as a PDF for archives.

When it comes to archiving tax returns, converting them into PDF format offers a convenient and secure solution. By digitizing your documents into PDFs, you can safeguard them from physical damage and loss. To effectively store and organize your tax records, follow these tips:

• Digitize the documents using a free scanner app like Adobe Scan.
• Save both locally and on a reliable online file storage platform such as Google Drive, Dropbox, or Microsoft OneDrive.
• Organize your PDFs properly, creating a logical folder structure based on tax years or document types.
• Merge related documents into one PDF file for streamlined organization and easy retrieval.
• Compress large PDFs to optimize storage space and facilitate sharing.

You can do these organizing tasks with PDF editing software like Adobe Acrobat or with Adobe Acrobat online services. Find out more about how to work with PDFs online.

Discover everything Adobe Acrobat can do to create accessible documents today. You can edit PDFs, fill and sign PDFs and forms, combine PDFs into a single file, and much more.