Whether you’re a business owner or just trying to stay ahead of the clutter at home, knowing how long to keep your records can save you from future headaches (and audits). This guide breaks down what to keep, for how long, and why it matters.
Quick Table of Contents
- Business Record Retention Guidelines
- Personal Record Retention Guidelines
- Special Circumstances & Outlier Documents
- Bonus Tips for Storing Records
- Downloadable PDF (coming soon!)
1. Business Record Retention Guidelines
Keep for 1 Year
- Purchase receipts for minor expenses (under $75 unless travel-related)
- Duplicate deposit slips
- Internal memos or drafts not related to compliance or legal issues
- Routine correspondence (non-essential emails, newsletters)
Keep for 3 Years
- General tax returns and supporting documentation (if no fraud is suspected)
- Bank statements
- Credit card statements
- Employee timesheets and schedules
- Expired insurance policies
- Vendor contracts and agreements (if not ongoing)
- Customer invoices
Keep for 6 Years
- Tax records (if underreported income by more than 25%)
- Payroll records
- Business expense receipts
- Sales records and inventory reports
- Employment tax records (Form 941, W-2, W-3)
- Cancelled checks (especially for large or tax-related payments)
Keep Forever
- Incorporation documents, Articles of Organization, or partnership agreements
- EIN confirmation letter from IRS
- Business licenses and permits
- Intellectual property documents (trademarks, patents, etc.)
- Year-end financial statements
- Audit reports
- Legal documents and major contracts
- Property deeds and mortgage documentation
2. Personal Record Retention Guidelines
Keep for 1 Year
- Monthly utility bills (unless used for tax deduction)
- Bank deposit and withdrawal slips
- Credit card receipts (until reconciled with statement)
- Medical bills (until paid and verified)
Keep for 3 Years
- Personal tax returns and backup docs (W-2s, 1099s, etc.)
- Health insurance claims
- Annual investment statements
- Charitable donation receipts
- Proof of home improvement expenses (for home sale gains)
Keep for 6 Years
- Tax returns if you underreported income by more than 25%
- Records for nondeductible IRA contributions
- Self-employment or freelance income and expense records
- Childcare receipts claimed on taxes
Keep Forever
- Birth and death certificates
- Social Security cards
- Marriage and divorce documents
- Military records
- Education transcripts and diplomas
- Final will and testament, powers of attorney
- Property deeds and vehicle titles
- Passport copies
- Retirement plan documents (401(k), IRA, pension info)
3. Special Circumstances & Outlier Documents
Some documents don’t fit neatly into the categories above. Here’s how to handle them:
| Document | How Long to Keep | Why |
|---|---|---|
| Tax returns | At least 7 years | IRS audits can go back 6 years in some cases |
| Bank statements (business) | 6–7 years | Proof of income, deductions, legal disputes |
| Insurance policies (expired) | 3–6 years after cancellation | In case of delayed claims or disputes |
| Home purchase/sale documents | Forever | Proof of cost basis, capital gains, etc. |
| Medical records (major procedures) | Forever | Helpful for ongoing care and insurance |
| Receipts for major assets | Until sold/disposed + 3 years | Needed for depreciation or resale tax basis |
| Loan documents | Until paid off + 7 years | For credit or legal reference |
| Legal settlements | Forever | In case of future disputes |
4. Bonus Tips for Storing Records
- Go Digital: Scan and organize documents using folders labeled by year and type.
- Backup: Use cloud storage and an encrypted external drive.
- Shred It: For anything you discard, make sure it’s unreadable—especially anything with personal info.
- Label Clearly: Include retention year or destruction date on files.
- Check Annually: Review and purge non-essential files once a year.
Need help deciding whether to keep or shred a specific document? Ask yourself:
“Would I need this to prove something legally, financially, or medically?”
If yes—file it. If not—shred it.
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