TAX RECORDS
FEDERAL INCOME TAX FORM DEDUCTIONS ACCOUNTING HOW LONG TO
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EDUCATIONAL ARTICLE
Be
sure to maintain
good tax records.
KEEP
YOUR TAX RECORDS STRAIGHT
No matter if you are eighteen and just
finished school or sixty-five and recently retired, you will have records that
you will need to keep. Some records will need to be kept for longer periods of
time than others are.
Knowing what to keep, how to keep it and what to throw out
can help you eliminate clutter. Also, having your important records handy is also
important in case of an emergency or a life-changing event.
KEEPING
YOUR TAX RETURNS AND RECORDS
Of course, one of the first things you
will have is your tax return. The last three years of tax returns should be kept
on file in an accessible place. After that time, destroy returns; don’t just
throw them out. Remember that your tax returns contain some of your vital
information, such as your mailing address and your social security number. You
do not want that information lying around in this day and age so make sure that
you store them securely in your home.
Your receipts and financial records
associated with your tax return should be organized and kept with that year’s
respective return. If for some reason the IRS audits you, you will have
everything handy in one place. Having these records organized at home will save
you time in having to request them from your tax professional or accountant if
the need arises to have a copy of them quickly. If it is necessary to keep
receipts and financial records in another location, then make sure you have
copies of these receipts with the tax return.
A good tip on keeping receipts is to make
copies of them on an actual copy machine such as a Xerox or Mita. This is
especially imperative for any thermo-paper receipt that you have. The impression
on thermo paper, which nearly every retailer uses now a days, will faded off in
one to six months, literally leaving you with a blank or difficult to read
receipt. Also, store these receipts in a cool dry place, as heat will make them
appear burned or turn them black making them completely illegible.
If you have receipts that have been
created using carbon, make sure that your copy is legible and dark enough to be
read after some handling. Remember that most carbon styled receipts will
“crinkle” or turn dark when folded or creased so store them flat in a cool dry
place. These receipts will also turn dark if exposed to too much heat, rendering
them illegible.
Having everything in one place will also
be useful if you are being audited on more than one year. Tax returns can be
destroyed after three years, but keep in mind that if the IRS finds something
amiss in your current tax return, they can go back farther than three years to
audit if they suspect fraud.
Keeping your records straight will
benefit you immensely in the long run. It will aide in keeping clutter down,
expedite finding them in a pinch and save you time and money requesting copies.
Remember to also have other important documents, such as birth certificates and
life insurance policies stored safely and securely also. You never know when you
might need them.
To
teach and learn more money skills, personal finance, and money
management, please go to the Money
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Tax Information
Be
sure to maintain
good tax records.
To
teach and learn more money skills, personal finance, and money
management, please go to the