How Long to Keep Tax Returns: 7 Questions to Consider

Did you know the average American spends 13 hours every year preparing federal tax returns? For small business owners, that figure almost doubles to 24 hours!

Keep reading to find out exactly how long you should keep your tax records in your situation. The answer may surprise you!

Period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax.

What is the Period of Limitations?

For the actual tax return itself, the IRS advises keeping them forever. I would 100% agree with that.

How Long to Keep Tax Returns (according to the IRS)?

You should keep records relating to property “until the period of limitations expires for the year in which you dispose of the property.”

Unique Requirements for Property Owners

Have a part-time side hustle or freelance gig, or get a lot of your income from 1099s or under-the-table jobs.

How Long Should I Keep Tax Returns as a Small Business Owner?

The silver lining is you get to claim this loss to offset your income (in most cases) on your tax return.

What if I Have Claimed Investment Losses or Bad Debt Write-Offs?

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